Sale of home

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  • rwm221
    Senior Member
    • Feb 2018
    • 135
    #1

    Sale of home

    They are coming out of the woodwork now.

    A client sold his house ti invertors in October 2025. They received 2/3 of sale price in cash and received the other 1/2 in 2026 after investor sold the house. How do I report this sale. Would it be an installment sale or would I use complete sale in 2025
    Tags: None
    • Uncle Sam
      Senior Member
      • Jul 2006
      • 1482
      #2
      Something is incorrect from what you stated - 2/3 of price in 1st year, 1/2 in second year? What did the contract say?
      Uncle Sam, CPA, EA. ARA, NTPI Fellow

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        • rwm221
          Senior Member
          • Feb 2018
          • 135
          #3
          Sorry 2/3 2025 1/3 2026

            Comment

            • Uncle Sam
              Senior Member
              • Jul 2006
              • 1482
              #4
              It appears to be an installment sale - but the contract terms should state payment terms.
              IRS Form 6252 https://www.irs.gov/pub/irs-pdf/f6252.pdf
              Last edited by Uncle Sam; 09-23-2026, 08:13 PM.
              Uncle Sam, CPA, EA. ARA, NTPI Fellow
                👍 1

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                • terryats
                  Senior Member
                  • Jan 2019
                  • 284
                  #5
                  The IRS automatically treats sales with multi-year payments as installment sales, so it looks like you should use form 6252
                    👍 1

                    Comment

                    • TaxGuyBill
                      Senior Member
                      • Oct 2013
                      • 2366
                      #6
                      It is an Installment Sale, but you have the OPTION to either report it all in one year or spread it out over the payment period.

                      If the house was his Principle Residence and the entire gain is excluded, you would just report it all in one year because there is no taxable gain.

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