Generally,
the type of sale you describe would be considered an "Installment Sale", since you receive payments over more than one tax year. In such a case, any gain (profit) is reported over the term of the contract.
However, per IRS Pub
537 Sale at a loss: If your sale results in a loss, you
cannot use the installment method. If the loss is on an installment sale of
business or investment property, you can deduct it only in the tax year of sale.
Since you have no gain (purchase price = selling price), you would report the entire sale at the beginning of the contract.
Either
option (gain or no gain) is entered under the same topic in TurboTax.
To
enter an installment sale (Form 6252), search on "Sale of Business Property." Use the jump-to link to go
to the start of this topic.
- On the
page "Any other property sales," say Yes, or Add a Sale.
- For an installment
sale, check the box titled "Sales of real
estate, cars or anything else for which you receive payments over two or more
years."
- Or you can choose another category to report the entire sale this year.
- Follow
the prompts to enter your sale information.
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