A loss is not allowed to be reported on the installment method. The land, although 'held back' as far as transferring the assets, does not affect the installment sale that it is a part of for reporting purposes.
Two Points for you to consider:
- Correct the installment sale to include the land, OR
- Report the land sale separately, which is how it appears you set it up initially, fully reportable in 2023, when it occurred.
The land then would be a 'Sale of Business Property' without using the installment method.
@GeorgeHeim
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