We recommend using the Step-by-Step guidance in TurboTax Home & Business when entering an installment sale. This interview will capture all relevant information and report the amounts on the correct forms and link the sale to the proper activity Schedule. This includes Form 4797, which is needed to calculate depreciation recapture (if any). You can always review the results in Forms Mode to confirm the outcome.
Note that gain on an installment sale is recognized each year based on the amount of principal payment you received. If the buyer paid you 30% of the principal, for instance, you would then report 30% of the gain.
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