Question

Installment disposal of business

Forum|Forum|2 years ago
April 2, 2024
1 reply
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I have sold a small software business. There was a down payment in this year and monthly payments for the next two years. Do I say the business was sold this year or do I keep filing business form until the payments are done and then record the disposal?

TurboTax Home & Biz Windows

PatriciaV

This type of transaction is known as an Installment Sale. Because the sale agreement was executed this year, you report the contract and the initial payment this year. In future years, you will report only the payments you receive.

To enter an installment sale (Form 6252), use the Find/Search box in the TurboTax header and type in "Sale of Business Property."
Hit Enter, then click on "jump to sale of business property."
You will see a screen titled "Any other property sales."
Check the box titled "sales of real estate, cars or anything else for which you receive payments over two or more years."
Click Continue & the interview will guide you from there.

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