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.