Dottie Fauci
Level 2

I have a client that sold residential real estate (we've file Sch E for years). I have the 6252 Installment Sale Income filled out correctly, determining the gross profit percentage. The clients got $17,000 as a down payment, and sellers are holding the note. Buyer is paying interest only for two years, then they will make the balloon payment of the balance of the principle of $71,000. If I enter the sales prices for all the assets in service, the system is taking the whole $88,000, but the sellers only received $17,000. How do I not show the $71,000 this year (2022)? I thought of not entering the sales amounts on the asset worksheets, just the date of sale, but I don't know if that's correct. If we opt-in to claim the whole sales amount, and something happens where the seller doesn't fulfill the contract, then we would have to amend 2022, or show a loss in 2024?

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