Posted by Ed Copp (OH) on May 17, 2006 at 11:44:54:
If the shoe fits, wear it. It’s your shoe not mine.
TurboTax made me pay full tax on installment sale! - Posted by Handy (MN)
Posted by Handy (MN) on May 15, 2006 at 15:42:55:
Well, OK, TT didn’t “make me” do it, but reviewing my 1040 docs, it gave me no option. I bought the property Sept. 2004 for $16,000 (for cash), sold in Oct. 2005 for $68,000 on a CD, with $5000 down. I got 2 CD payments in 2005, then POW! Nailed with a $7800 tax bill (thankfully, 15% short term gain). I reported it as an “Installement Sale” in TurboTax, but had to pay anyway, all this year.
I sold 4 properties this year, 3 “short-term gainers” and this one. I thought the Installment Sale allowed me to pay taxes on my profit as I receive payments. Where did I screw up? Should I file an amended return, and how would the IRS view my excuse, “Uh, TurboTax did it, not me…?”
Re: This is sad. - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on May 16, 2006 at 19:07:36:
It is a sad day when the software is smarter than you are. Obviously this is your own fault. Fire turbo tax, get the directions from the IRS, for free. Read the directions. Then file your taxes properly. Tell them that stupidity made you do it along with her helper turbo tax, and her assistant Ms. lazy.
If you want anything done right, do it yourself.
full tax on installment sale! - Posted by michaela-ATL
Posted by michaela-ATL on May 15, 2006 at 15:57:59:
I’m not an accountant, so take my answer with a grain of salt, but I think Turbo tax may have automatically classified you as a ‘Dealer’, in which case you can
not take ‘installment’ profits, but will have to pay taxes on the total up front.
Michaela
Re: This is sad. - Posted by gman
Posted by gman on May 16, 2006 at 22:06:59:
Name calling because someone used TurboTax? Maybe you just should have just skipped the post.
I use my computer to check county records, does that make me too lazy to go to the court house, or is it smarter use of my time?
Get Help - Posted by Jimmy
Posted by Jimmy on May 16, 2006 at 07:18:22:
call Intuit technical assistance and ask them where you went wrong. you failed to toggle a switch that tells the program to use the I-method.
before you do this, look in your user guide under Installment Sale, and see if you can figure it out yourself. or open the program, hit the help button, and type in installment sale.