DavidD66
Expert Alumni

Get your taxes done using TurboTax

You would report the sales proceeds as $205,000 resulting in a gain of $57,000.  When, and if you receive the remaining $25,000 you would report that as an gain in the year it is received.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"