Installment sale sale payoff

[kdominic]

I have reported a installment sale income for the past 10 years form 6252.  I was paid off last year.  How do I report the payoff?

[Critter-3]

Same way as all the other years ... you will enter the principal and interest received  and then click the final box ... 

 

[Pavi]

I chose the installment sale method to report my property sale 12 yrs ago and have been paying taxes on the interest earned on the loan to the seller on my ttax returns thru 2020. In 2021 I have a request for payoff amount.  My question is for my 2022 taxes will I only owe taxes on whatever interest I have been paid to date (which is all that I think I will owe) or does the IRS require some kind of additional tax from me? 

Pauline Curiel

[Pavi]

Thank you so much.