How do I report capital gains income on installment agreement of unimproved farm land on schedule F? Four installments beginning 12/2016 and sale date 3/2019.

[Cattlerancher · Accepted solution]

I don't know what version of TurboTax you are using to guide you there but you report installment sales in the Personal Income section, scroll all the way down to the bottom and find Less Common Income, look for Installment Sales click Start or Update for the interview. Farm land sales capital gain/loss will be reported on schedule D. Depending on how the sale is entered, gain/loss may be reported on form 4797 (Sales of Business Property) but will flow to schedule D.

[blenycanales]

We sold a land in 2019.

Cost 2,500

Sold 30,000 

Installments payments started in 2019. 

 it will the first time to report it. It has been full paid in December 2020.

[Irene2805]

If the land was sold in 2019 and payments started that year, the transaction and the payments received should have been reported as an installment sale in 2019 on form 6252.

Form 6252 is used to report the sale in the year it takes place and to report payments received in later years.

You can report the 2020 income from an installment sale by following these steps:

1.  Click on Federal > Wages & Income
2. Scroll down to the Less Common Income section and click on the Start/Revisit box next to Installment Sales. On the Installment Sales screen click on the Yes box.
3. Continue through the interview, entering the requested information.

If you did not report the sale in your 2019 return, you should amend that return, entering the 2019 proceeds received from the installment sale. 

@blenycanales