Yes, but you pay taxes only on the portion of the gain related to payments you receive each year from the buyer. This is considered an "installment sale" for tax purposes.
The easiest way to find this section of TurboTax is to use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in "installment sale", hit Enter, and click on "jump to installment sale" to go directly to beginning of this topic.
Or go to My Account >> Tools >> Topic Search. Type in "installment sale", then click the topic in the list to go directly to the start of this section.
(If you are using the mobile app and don't have My Account or Tools on your screen, try logging into TurboTax from a laptop or desktop browser.)
- Continue to the screen
titled "Any other property sales."
- Check the box titled
"sales of real estate, cars or anything else for which you receive
payments over two or more years."
- Click continue & the
interview will guide you from there.
You
should also report the interest received separately under Personal Income | Interest From Seller-Financed Loans (TurboTax
will ask for this information during the Installment Sale interview).
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