Deductions & credits
Yes, you will spread the capital gain of $42,695 over the number of years you receive payments. You will complete Form 6252 Installment Sale Income and use it to calculate and report your installment sale income each year. It will be a percentage of the money you receive each year, based on the percentage of your gain on sale in relation to the proceeds from the sale.
You can enter the sale in the Less Common Business Situations section:
Or use the Help option on your top right menu bar to find a "jump to" link when you search for "Installment Sales"
If you choose the first method above you will see an option to indicate that you have installment sales:
