If $50,000 down payment was received in 2019 on an installment sale of a partnership in an LLC, what should the long term capital gains %age be on an income of $143,000?

[rsovern]

The total profit was $202,820.

[LudwigVan_fan]

The sale of a partnership interest can be very complex.  Several items are considered ordinary income vs. capital gain, and some items are excluded from installment sales.  Included in that sale would be your percentage of inventory, accounts receivable, depreciation recapture, and other items that give rise to ordinary income and may be excluded from installment sale.  I will provide you with two links to help get you started.  The first is a link to partnerships and the second to installment sales.

Also, as part of an installment sale, there should be stated interest  for the deferred payments.  If not, than unstated interest rules must be considered.

https://www.irs.gov/publications/p541

https://www.irs.gov/pub/irs-pdf/p537.pdf

These links also contain links for other materials.  If after doing some reading and you find that you don't quite understand it, you might want to consider consulting a tax professional.

[Rick19744]

In addition to what was provided by @LudwigVan_fan you need to keep the following in mind:

• After reading the links provided by LVF, you will also need to take a look at the installment sale form 6252.  This guides you through what may need to be taxed immediately (ordinary income portion) and then what you installment sale percentage will be for the current year and going forward.
• You will also need to know what your basis in the LLC was.  Hopefully you have this, as this is the key to determining your overall gain or loss.
• Just for a high level understanding by way of example, your overall gain may be $200,000 (as stated in your facts), but as you look through the installment sale form and instructions, you will report the ordinary income portion in the year of sale along with any potential capital gain.  The $200,000 gain could be $70,000 ordinary and $130,000 capital.  I have even seen situations where taxpayer's get whipsawed with an overall gain of $100,000 where the ordinary component is $120,000 and then they have a capital loss of $20,000.
• https://www.irs.gov/pub/irs-pdf/f6252.pdf
• As was noted in @LudwigVan_fan post, this is a complicated area just determining your overall gain, then add in the complexity of ordinary vs capital, then finally the installment sale component.  For this amount of $$ you may be wise to consult with a tax professional.