Sold a piece of commercial property (not a main home) with a closing date in 2021 but received no payments in 2021. The installment Sale proceeds start in 2022. There was no business associated with the commercial property. Do I report any of the sale information in the 2021 tax year or do I wait until the tax year when beginning to receive the installment sales income/payments?
If there is no taxable income in the year of the installment sale, you may wait to report the sale next year. You can test this by entering the Sale of Business Property in TurboTax. You should see a message that you have no income to report. Note that with an installment sale, your gain is reported each year based on the amount of principal payments you receive.
I am of a differing opinion.
I think you should report the sale in the year it occurred regardless of whether any installment sale proceeds were received.
Additionally, your fact are limited. If the property you sold was subject to depreciation, recapture is recognized in the year of sale regardless of whether you receive cash or not.