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Subject:  Re: Rental Real Estate Sale Date:  2/5/2000  10:05 PM
Author:  TMFTaxes Number:  27408 of 133017

<<I sold a piece of rental property last year and financed the mortgage myself. In using Turbo Tax to figure my taxes and setting up this sale as an installment sale, I get an error message that "… the land portion of the sale does not qualify for the installment method. You must remove the land and enter it on a separate Asset Entry Worksheet … .">>

I'm not familar with I can't help you with the error message...sorry. But I CAN tell you that there is no requirement to separate the land from the structure in order to property report an installment sale.

<< Basically it seems they want me to treat it like two separate sales with the land not qualifying as and installment sale.>>

They might want you to do that...but it's certainly something that YOU don't want to do. And something that the IRS does not require you to do.

<< I can't find anything in the IRS publications that states the land portion of a sale is not eligible for treatment as an installment sale >>

Nor will you...

<<and getting support from Intuit is like getting blood from a stone.>>

Sorry to hear that...

<< I would appreciate any input from anyone who has knowledge about this type of transaction.>>

Again...I can't help you with TTax. I don't use it. Others in the folder might be able to help walk you through the transaction. But you are not required to split off the land in the transaction. The entire property will qualify for installment sale treatment (assuming that you DO qualify for the installment method).

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