ColeenD3
Expert Alumni

Get your taxes done using TurboTax

As @DaveF1006 said, " This then would be treated as a normal installment sales assuming there are no other contingencies attached."

 

Single Sale of Several Assets

 

If you sell different types of assets in a single sale, you must identify each asset to determine whether you can use the installment method to report the sale of that asset. You also have to allocate part of the selling price to each asset. If you sell assets that constitute a trade or business, see Sale of a Business, later.

Unless an allocation of the selling price has been agreed to by both parties in an arm's-length transaction, you must allocate the selling price to an asset based on its FMV. If the buyer assumes a debt, or takes the property subject to a debt, you must reduce the FMV of the property by the debt. This becomes the net FMV.

 

A sale of separate and unrelated assets of the same type under a single contract is reported as one transaction for the installment method. However, if an asset is sold at a loss, its disposition can’t be reported on the installment method. It must be reported separately. The remaining assets sold at a gain are reported together.

 

Here is the LINK again.