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Taxability of Installment Sale Payments
Receiving installment payments on rental real estate sold at a gain and owner financed.
Amounts from forms 4797 and 6252 are ultimately being reported on form 1040, line 8, Other Income From Schedule 1, line 10.
Then, I believe I am being taxed at ordinary rates on this long term capital gain installment income, rather than the preferred lower capital rates.
Unclear as to how to correct this in turbo tax.
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posted
May 22, 2023
11:34 AM
last updated
May 22, 2023
11:34 AM
1 Reply
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Taxability of Installment Sale Payments
The Depreciation recapture portion, of the gain, is taxed at the ordinary income rate, but not more than 25%. It is a "section 1250 gain".
May 25, 2023
5:48 AM
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