prior year installment sale

[t2h]

how do I enter a prior year  installment sale on a business tax return?

[DianeC958]

You report it by using form 6252 to report the installment sale.

What is IRS Form 6252: Installment Sale Income

[pfrancom]

Where do you access the Q&A for the prior year installment sale?  Or do we have to go directly to the form and enter the data there? 

[MaryK4]

Under Wages& Income- Look for Less Common Income- Installment Sales.

@pfrancom

[lldlld1]

what about interest from seller financed section?

i sold a property and have income from holding a mortgage and still am responsible for a mortgage on it even though i sold it and wrapped it , what section of turbo tax should all this go??

[KrisD15]

Click Federal

Wages & Income 

Scroll down to Interest and Dividends and click Show more

Scroll down to "Interest from Seller-Financed Loans" and click Start 

Enter the interest you received 

Next click Federal

Deductions & Credits 

Scroll down to "Retirement and Investments" and click Show more

Scroll down to "Investment Interest Expenses" and click Start 

The interest would only be deductible on your tax return if you are itemizing. 

[t2h]

I see nowhere to enter a prior year installment sale in the business software.  The entity is an S-corporation.  Do I need a more sophisticated product?

[ThomasM125 · Accepted solution]

You can enter your installment sale income in TurboTax Business as follows:

1. Click on the "Forms" icon on the top right corner of your screen

2. Find the "Open Form" icon on the top of the "Forms in My Return" column on the left side of your screen

3. Type in "6252" in the box that says "Type a form name"

4. Choose the "Form 6252: Installment Sale Income" option from the drop down menu

5. Click on "Open Form" 

6. Enter a description of the property sold

7. Complete the "Installment Sale Income" worksheet that will populate

[taxwizmdr]

First-time Turbo Tax user: I entered my prior-year installment sale income on the form and with all the year of sale info. But it is insisting this is a related party sale when I checked "No." Form has five errors. I just want Part II to show on the 6252 (plus lines 1 - 4). Please help!

[taxwizmdr]

I ended up solving the problem by going to another screen.

[BarBandB]

So if I enter the 1099-Int from the installment sale on the Schedule B (with the Dividends and Interest Section) and the again on the 6252 as Interest Payments received in 2020, am I entering it twice?  I zeroed out each amount and the taxes owed went down twice; that seems to me like I am entering the interest twice.

[Irene2805]

Do NOT enter the interest from an installment sale on Schedule B.  

In your return you will use Form 6252 to report a sale of property on the installment method. The form is used to report the sale in the year it takes place and to report payments received in later years.

You can report the proceeds 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.

@BarBandB

[BarBandB]

  Since we received a 1099-INT from the title company that is handling the payments, I wasn't sure where it should be entered.   Also since there be a red "DO NOT FILE" above the 2020 on the right hand side, of from 6252, (I looked this up at TurboTax and evidently, you are not to File Form 6252 if there is not a gain)  then how will the IRS know that we put in the interest onto form 6252.  The only place that the "net long term gain" is reported in on Form D, line 11, which doesn't make sense for the red "DO NOT FILE" tag that appeared since there is a gain.  I just want to keep things simple.  Since we are filing electronically through TurboTax, I am assuming that form 6252 will not be filed automatically.

[ErnieS0]

@BarBandB Is this the first year of your installment sale? The IRS does not allow you to use the installment method to report a loss so I am unsure what type of sale you have.

If you previously filed Form 6252 it means you had a gain from the sale. You can refer to your 2019 Form 6252 to fill in the property description and principal payments received prior to 2020 and enter and then enter the 2020 principal and interest received.

The red DO NOT FILE is there because the 2020 Form 6252 is not final. It is expected to be ready on March 4.

You may have a land contract. In which case Tax Expert @MayaD says to enter the 1099-INT as interest.

To report an installment sale:

• Click installment sales in Search in the upper right
• Click on Jump to installment sales
• On Any Other Property Sales? Select Sales of real estate, cars, or anything else for which you receive payments over two or more years (installment sales).