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Level 5
April 3, 2022
Question

Seller Financed Loan on installment sale - seller sold loan - how to report

Seller carried the loan and installment sale was setup on Form 6252 in 2020. Principle & interest received were recorded for 2020. Seller sold note in 2021. How to report?

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6 replies

dd4vols
Intuit Community Champion
April 3, 2022

You report receipt of the remaining note rec as all being received in current year on Form 6252.  Part II, Line A1  (which actually could be some from the original borrower and some from note purchaser.). and don't overlook any interest rec;d before the note sale.

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csanchezAuthor
Level 5
April 3, 2022

Thank you. I will check it out.