Sold 2nd home in 2017,bought in 2013 holding the note for 5yrs. Paid $30K & sold for $60K. Made improvements to property. How do i enter the net proceeds?

[DianeW · Accepted solution]

You can choose to enter the sale in one year or you can choose to enter an installment sale if the overall net result is a gain.  The latter allows you to report only the portion of the gain you actually received each year and the interest income. The original cost plus improvements will be the purchase price. If you used any depreciation expense be prepared with the total accumulated depreciation amount.

To enter an installment sale in TurboTax (Form 6252) follow these steps:

1. Select Federal > Wages & Income > Less Common Income
2. Select Installment Sales
3. Click continue and the interview will guide you from there.

To enter the entire sale in the year of sale you can use the steps below:

1. Federal  
2. Select Wages & Income
3. Scroll to Investment Income
4. Select Stocks, Mutual Funds, Bonds, Other
5. Continue and select Second Home
6. Follow the screens to complete your entries

If you choose the installment method, do not enter the interest income twice.  If you choose to report the sale all in one year, then record the interest income also. (Search for seller financed interest > Jump to seller financed interest)