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New Member
posted Feb 8, 2021 10:45:14 AM

Purchased 2nd home 2019 and sold 2020, to son- 20yr.@ 2.9%. I reported 1099-int in TT. Have also added sale info under Other. Do I add sale info as Installment sales to?

This home was purchased as a fixer and sold to son once repaired. It was never lived in during repair period or rented.

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1 Best answer
Expert Alumni
Feb 8, 2021 2:34:08 PM

Your second residence (such as a vacation home) is considered a capital asset. Use Schedule D (Form 1040), Capital Gains and Losses and Form 8949, Sales and Other Dispositions of Capital Assets to report sales, exchanges, and other dispositions of capital assets.  

 

Installment sales is not necessary because this transaction is between related parties, plus the sale of your second home is not taxable unless the profit if married filing joint is $500,000.00 or $250,000.00 if single.

3 Replies
Expert Alumni
Feb 8, 2021 10:57:20 AM

Yes, this is an Installment Sale. I don't know what you mean by adding the sales info under "Other". Just include in on the Form 6252.

New Member
Feb 8, 2021 1:53:38 PM

What I mean by adding the sale info under Stocks, Mutual Funds and Other.  Under the Other in this catagory in investment income it takes one thru the sale detail.  Should I remove the information there if I use the Installment sales?

Expert Alumni
Feb 8, 2021 2:34:08 PM

Your second residence (such as a vacation home) is considered a capital asset. Use Schedule D (Form 1040), Capital Gains and Losses and Form 8949, Sales and Other Dispositions of Capital Assets to report sales, exchanges, and other dispositions of capital assets.  

 

Installment sales is not necessary because this transaction is between related parties, plus the sale of your second home is not taxable unless the profit if married filing joint is $500,000.00 or $250,000.00 if single.