Sale of Main Home, seller financed installment basis

[Inflow_outflow]

I am confused by the scenario of selling a home, seller financed for a family member.

The sale is of a Main Home, first time sale and meets the criteria below.

However, the next question in TT is the Installment Sales info.
I'm confused as to what info is to be entered, since the first question scenario was met as a Main Home, first time sale and the exclusion criteria is met.

Please advise,

Thank you, Julie J

*To claim the exclusion, you must meet the ownership, use, and timing tests.

Ownership: You must have owned the home for at least two years during the five years prior to the sale of your sale. It does not have to be continuous.

Use: You must have used the home you are selling as your principal residence for at least two of the five years prior to the date of sale. This means that during the 5-year period ending on the date of the sale, you must have, owned and occupied the principal residence for at least two years.

Timing: You cannot have excluded the gain on the sale of another home within two years prior to the sale.

[DavidD66]

When you sell a house under a contract that provides that part of the selling price will be paid in installments, you must report the sale as an installment sale.  However, you can elect to opt out by reporting the sale on Form 8949.  Do not report it on Form 6252.  Do not indicate in TurboTax that you have an installment sale.  Instead, report as the sale of primary residence.  To report the sale of your home, while logged in to your return 

 follow these steps:

1. Click on Federal > Wages and Income 
2. Scroll down to Less Common Income
3. Under Less Common Income, click on the Start/Revisit box next to Sale of Home (gain or loss). 
4. On the screen Sale of Your Main Home click Yes box.  
5. On the Sale of Your Main Home screen, review the information you will need to enter and click Continue.  
6. Continue through the screens, entering the requested information.

[Inflow_outflow]

I'm at the screen now, however it now is asking for purchase price information that I do not have from 1981 and major improvements along the way.

I'm thinking this might require a deeper conversation with a tax professional.

I am working as POA for a parent and she has sold the home as a Widowed spouse, and in the position as Seller Financer...

This might be just a bit too complex to figure out with the regular questionnaire in Turbo Tax.

[Mike9241]

I'm at the screen now, however it now is asking for purchase price information that I do not have from 1981 and major improvements along the way.

I'm thinking this might require a deeper conversation with a tax professional.

I am working as POA for a parent and she has sold the home as a Widowed spouse, and in the position as Seller Financer...

This might be just a bit too complex to figure out with the regular questionnaire in Turbo Tax.

if the spouse lived in a community property state at the time of the other spouse's death you would need to know the fair market value on the date of death and the cost of any subsequent improvements. that's what the cost (purchase price) would be for tax purposes. the same would be true in a non-community property state if the deceased spouse was the sole owner. on the state of death.

on the other hand if they lived in a non-community property state and the property was held in joint tenancy  1/2 the "purchase price" would be what was paid originally + 1/2 the cost of improvements after purchase) . the other 1/2 of the "purchase price" would be as above - 1/2 the FMV on date of death + 1/2 improvemts after death.

other scenarios are possible such as life estate. if you are not sure, I agree, consult with a tax pro especially if there is a taxable gain