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rosslitton
Returning Member

I sold my business and am being paid yearly for 10 years.Do I show this income on line 21 of the 1040?

 
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RichardG
New Member

I sold my business and am being paid yearly for 10 years.Do I show this income on line 21 of the 1040?

You can (and probably should) elect installment sale treatment for your business.  When you have an installment sale, you have two choices for how you will be taxed on any gains from the sale:

1. You can report and be taxed on the full gain in the year of sale; or

2. You can elect the installment method and only be taxed on the money you receive during any given tax year.  

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-is-IRS-Form-6252--Installment-Sale...

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RichardG
New Member

I sold my business and am being paid yearly for 10 years.Do I show this income on line 21 of the 1040?

You can (and probably should) elect installment sale treatment for your business.  When you have an installment sale, you have two choices for how you will be taxed on any gains from the sale:

1. You can report and be taxed on the full gain in the year of sale; or

2. You can elect the installment method and only be taxed on the money you receive during any given tax year.  

https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-is-IRS-Form-6252--Installment-Sale...

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