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

[pyle-patty]

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]

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

[pyle-patty]

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

No equipment, livestock or crops.

[sjrcpa]

Was it sold as one transaction?

Are they deeded separately?

[pyle-patty]

one transaction sale.  rental house will be torn down by purchaser.

House and land sold in one transaction.

seller purchased land and house as one property.  rented the house

until renters trashed it, and ran cattle on the land the entire period

of ownership.

[sjrcpa]

It's one sale. Report on one 6252.

Combine all the basis info from the farm and house.

If you use Lacerte, don't use the bulk sale feature. Enter this as one disposition.

It doesn't matter that operating activity was on Schedule E and F.

All the gain goes on 4797/Sch D.

[BobKamman]

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?  

[pyle-patty]

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]

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.