1040-US: Installment sale income from a mass disposal being reported as ordinary income

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Question

For an installment sale originating as a mass disposition, why is the sale income reported as ordinary income and not capital?

Answer

Because there are various purchase dates, the asset module reports the date acquired as "Various." An accurate holding period cannot calculate, so the application defaults to the most conservative tax approach in this situation. You can indicate where to report the gain/loss in the asset module. Make the appropriate selection in the Type of Property field or enter a date in the Date in service field on the Enter Disposal dialog in the asset module.

Related topic: Business and capital asset sale information FAQs (1040)

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