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monikaem
Returning Member

Final review Form 6252 error--land portion does not qualify?

I am selling a residential rental property (land + house) using an installment sale, for the first time.  No problems during input of the sale info, but upon Final Review I receive an error regarding the Schedule E--Asset Entry Worksheet that says, "Form 6252 link cannot be used because the land portion of the sale does not qualify for the installment method.  You must remove the land and enter it on a separate Asset Entry Worksheet, or remove the Form 6252 link."  When I try to remove the dollar amount for the land, I get an error saying I have to add an amount for the land.  When I try to unlink, then the Form 6252 doesn't fill all the background info on the asset.  I don't see a way to create a separate Asset Entry Worksheet for the land portion of the sale.  What am I doing wrong?

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2 Replies
swarmboe
Returning Member

Final review Form 6252 error--land portion does not qualify?

I am having this exact problem and I'm not able to see the responses to monikaem.  

What is the answer, or, how can I see the many responses to their question?

monikaem
Returning Member

Final review Form 6252 error--land portion does not qualify?

Hi there!  I never did receive any replies.  I eventually sorted it out on my own.  If I recall correctly, the issue was that the basis of the land was the same or more than the sales price that I had broken out for the land, so it wouldn't let me "sell" it "on contract" at a loss.  Once I broke apart the land and residential portions of the sale property differently, it allowed me to proceed.  Hope that helps!  (And, I hope I'm remembering it correctly!)

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