Q: I sold my financial planning business in 2023 via an installment sale.
-On my 2023 return TT subtracted the installment sale gain on Form 8960's line 5b, thereby not subjecting the gain to the NIIT. However, on my 2024 return ( year 2 of the installment sale), the year's gain was not subtracted on line 5b and thus was subjected to the NIIT.
I am at a loss for understanding why the installment sale gain wasn't subject to the NIIT in 2023 (the year of sale) but was subjected to the NIIT in year 2.
Can anyone clarify this for me?
