Tax implication for proceeds from selling an inherited foreign property in multiple installments over N years

[ceb0]

Hello Tax Experts,

I have read how to report in Turbotax the sale of an inherited foreign property in this thread:

community/tax-credits-deductions/discussion/tax-implication-for-proceeds-from-selling-an-inherited-f...

This is clear when the sale price is paid in full at once, and we report it in just one tax year.

What should we do if the sale contract says that the sale price will be paid in N installments (one per year, in N years) ?

Thank you in advance!

[Critter-3]

If you have an installment sale you simply report it as such in the program ... you will report the principal and interest you recieve each tax year on form 6252 ... follow the screen instructions carefully ....   https://www.irs.gov/forms-pubs/about-form-6252

[ceb0]

Thank you so much for your quick replay!!   If you allow me, I have a follow up question:

At the bottom of https://ttlc.intuit.com/community/tax-credits-deductions/discussion/tax-implication-for-proceeds-fro...

I found these instructions:

Actually you will report this next year on your 2022 tax return on the sale of the house. You will not report this on your 2023 tax return. This is how it is reported.

1. Click on the Federal 
2. Click on income and expenses
3. In the full list of income items on your return, scroll to the section labeled Investment Income.
4. Click start or revisit on the line labeled Stocks, Mutual Funds, Bonds Other.
5. If you are not using Premier, TurboTax will require you to upgrade in order to enter the sale.
6. After you have upgraded, continue through until you reach the screen labeled "Did you get a 1099-B or a brokerage statement for these sales?" Answer no.
7. Choose the appropriate asset from the list on the screen labeled "Choose the type of investment you sold".
8. Continue through the screens that follow.

You will need to know the total sales proceeds (if you inherited a share of an asset, you need your portion of the sales proceeds) and your portion of the inherited cost basis (the value of the asset on the date of death of the person from whom you received the inheritance).

Now my questions are: 

1) Does TurboTax support creating the Installment Sale Income Form 6252 which you indicated ?

2) Additionally, do I need to file Form 3520 (Receipt of certain large gifts or bequests from certain foreign persons), because I inherited the land from a foreign person ?

Thank you so much for your help !!!

[Critter-3]

1) Does TurboTax support creating the Installment Sale Income Form 6252 which you indicated ?  YES

2) Additionally, do I need to file Form 3520 (Receipt of certain large gifts or bequests from certain foreign persons), because I inherited the land from a foreign person ?  YES

[Critter-3]

How do I report an installment sale in TurboTax?

An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. You can read more about it here. Here’s how to report one in TurboTax:

1. Open your return in TurboTax.
2. In the search box, search for installment sales and select Jump to installment sales.
3. Check the box next to Sales of real estate, cars, or anything else for which you receive payments over two or more tax years (installment sales). Select Continue.
4. Answer Yes to Do you want to report an installment sale?
5. Follow the instructions to enter your sale details.