I am selling a 2nd property (obtained thru a life estate) on a contract for deed to my nephew at a loss where do I report the sale and where do I report the interest

[Critter · Accepted solution]

To enter a sale of a second home in TurboTax Online or Desktop, please follow these steps:

1.    Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)

2.    Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)

3.    Next click on “I’ll choose what I work on” (jump to full list)

4.    Scroll down the screen until to come to the section “Investment Income”

5.    Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)

6.    The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)

7.    Since you did not receive a 1099-B, answer “no” to the 1099-B question

8.    Choose type of investment you sold - select Second Home

9.    Use the installment sale form 6252 option when presented.