Since the payments
for your mom's client list are being made over a period of years, she'll need
to treat them as payments through an installment sale, and she'll need to
report the payments as income in the year she receives them.
To report the
installment sale, please follow these steps in TurboTax (Note that these may
vary, depending on the TT version you're using, but you should be able to find
something similar in the version you're using):
- Click on Personal
> Personal Income > I'll choose what I work on.
- Scroll down to the
Less Common Income section and click on the Start/Revisit box next to
Installment Sales.
- On the Installment
Sales screen click on the Yes box.
- Continue through the
interview, entering the requested information. You may need to estimate some of
the figures: Sales price -- enter an estimate of what you think the total will
be (you can always adjust it next year); Cost - unless you bought the list from
someone else, enter 0.
- On the Type of
Business Property screen, click Continue without making a selection.
- Continue through the
screens, entering the requested information.
