Contract for deed (also called land contract) is entered as Installment Sale in TurboTax. You can choose between reporting all the gain in the first year (so, entire amount in 2016) or you can report it each year in proportion to the payment (so in 2017 and further if applicable).
Data entry in Turbo Tax:
- Federal Taxes
- Wages & Income
- Scroll down to Less Common Income
- Select Installment Sales - continue with the interview
- Installment sale is a sale of property where you receive at last one payment after the tax year of sale.
- You must report interest each year. If there is no stated interest in the contract, you must calculate and report the unstated/imputed interest.
- For more information on installment sale, click here or visit IRS publication 537 for details
- You may be asked to upgrade to a higher version, such as Premier