I sold my house of 13 years in 2013 on a land contract with a 3 year balloon. I rec'd payment for the house in 2017, how do I enter this correctly?

[CherylW]

Was it a personal residence or rental?

[montie455]

Personal house of 13 years in which we lived in.

[montie455]

Thank u. This I knew. But I received payment in 2017 and turbo tax wants me to pay capital gains because I hadn't lived there the past 3 years.

[montie455]

How do I enter it properly with turbo tax?

[CherylW]

You don't enter it.  The sale was in 2013, and you're receiving the money now.  The only part that is taxable is any interest you received on it, which goes under seller-financed interest, see my earlier answer.

[CherylW]

How did you report the sale of your home in 2013?

[montie455]

On schedule B - interest from seller-financed mortgage. Recorded the interest for 3 years. Now in 2017 I received full payment. Do I just report the interest received in 2017 (3 months) and forget about the $185000 payment for the house?

[CherylW · Accepted solution]

If it was a personal residence, the sale and any income associated with it are not taxable 

UNLESS

you made more than $250,000 ($500,000 if married filing jointly) on it.

Any interest paid to you is reported on a Schedule B.  To report seller-financed interest:

1.       Click Federal on the left-hand side menu.

2.       Click Income across the top.

3.       Scroll down to Interest and Dividends and click Show more.

4.      Click Start or Revisit by Interest from Seller-Financed Loans.