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New Member

How do I report an owner finance (installment) sale of a rental property?

 
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Level 11

How do I report an owner finance (installment) sale of a rental property?

When you enter the Sale of your Rental Property in the Assets/Depreciation section, you will get a question 'Do you want to report this sale using the installment method?' (screenshot).

Answer NO to the 'Special Handling Required?' question (screenshot). 

Here's how to enter the Sale of Rental Property:

https://ttlc.intuit.com/replies/6686119

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Returning Member

How do I report an owner finance (installment) sale of a rental property?

Where do I report the interest part of an installment sale?

 

6252 only deals with principal and profit returned.

 

IRS doc says interst is ordinary income/dividends.  Theres several places to enter agregate interest / dividends.  Seems dis-joint to aggregate all interests received in one lump number??

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Expert Alumni

How do I report an owner finance (installment) sale of a rental property?

For the interest, you enter all of the interest you received from the installment sale of the property in the Federal section labeled Interest and Dividends.  You can add up the amount of interest you received during the year on the installment sale and put in that amount.

 

If you also received interest from a bank you add another entry to separate it from the interest you received on the installment sale.

 

More information about reporting Installment Sales

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