Level 3

how do i enter a mixed installment sale? Rental house and farm property sold for one price.

Forum|Forum|2 years ago
November 15, 2023
2 replies
11 views

Do I show the sale of the individual assets with a selling price allocated? I can't put the real estate

and farm on the same 6252 as they are different activities in the return. Any guidance will be appreciated.

sjrcpa

Level 15

By farm, do you mean the farm equipment, livestock, growing crops, etc.?

The more I know the more I don’t know.

P

pyle-pattyAuthor

Level 3

No, the land and barns were on a schedule F, and the rental house was on schedule E.

No equipment, livestock or crops.

sjrcpa

Level 15

Was it sold as one transaction?

Are they deeded separately?

The more I know the more I don’t know.

BobKamman

Level 15

Interesting situation. Sounds like there may have been a loss on the rental and a gain on the farm. You can't claim a loss on instalment sale, but since the property was bought in one transaction and sold in one transaction, is an allocation required? Or allowed?

P

pyle-pattyAuthor

Level 3

When I go into sch E or Sch F to mark the assets sold as installment sale, it won't let me use the same

6252. I am pretty sure I need to allocate the selling price between the two parts of the sale as well as

the payment received in 2023. (And all future payments). So, I am assuming I will have 2 Forms 6252.

The house is really only worth what the land value it is sitting on is, so assuming that is a loss, maybe I

only have one 6252 and allocate full selling price to the house to be shown in 2023, and balance of land

as installment sale in 2023 and future years....Maybe only one Form 6252. Thoughts?

sjrcpa

Level 15

Don't mark them sold in Sch E and F.

Just set up a sale.

You don't say what software you're using, so specific help is not forthcoming.

The more I know the more I don’t know.

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded