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dbroom01
New Member

I need to confirm that the installment sale income was taxed as a capital gain by turbo tax. How do I do that before I file?

Also, is there a way to preview parts of the return before filing?
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1 Reply
ThomasM
New Member

I need to confirm that the installment sale income was taxed as a capital gain by turbo tax. How do I do that before I file?

The quick way to check is to go into the upper margin of your screen and click on My Account, then select Tools from the dropdown box.  When the "Tools Center" opens, click on the first item in the list of "Other Helpful Links," View Tax Summary.  Then look above the summary page and click Preview My 1040.  That will load the 2-page tax return for your review.

Income from the installment sale will appear in two places, each place reflecting the specific component (interest or principal) of the sale.  Line 8a will have the interest you earned in 2016 on the sale, and line 13 will have the capital gain portion (principal).  Each year you'll have these two components until the buyer pays off the installment sale.

In addition to this quick-check method, there's a more thorough method to see the sale on your return, but you'll need to pay TurboTax first because it requires seeing the additional forms & schedules.

Once you've paid, you'll be able to see the Form 6252, Installment Sale Income, which shows all the particulars of the sale. You'll notice the taxable amount of principal for the year will appear on line 26 and then carry to the Schedule D, line 11B (which you can also see).  In addition, the interest earned will appear on Schedule B, Part I. 

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