We sold our business in 2018 and received installment payments in 2018, but none on 2019 and the final pay off in 2020. I had posted this question to the expert and got the following response.
|Re: Sale of LLc in 2018|
This should be reported on the same form that should have been initially completed in 2018 and then in 2019. The installment sale form 6252.
While I am sure this accurate, it doesn't really help me know how/where to report this income in my TurboTax Home and Business program. Can someone give me guidance on where this information is to be entered into the TurboTax Home and Business return?
Please and thank you.
To report the sale as an installment sale, enter the information in TurboTax Home & Business using these steps:
- Click on Personal > Continue > 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.
Thank you. I believe this sound guidance on the issue. Although I am sure how this was reported in the past by our previous tax preparer. And there was no payment received in 2019, so that made the trail even a little less obvious. I think that making this entry in this manner will satisfy the taxation issue for 2020 as it was the final installment.