You should report this as an Installment Sale so that you recognize capital gains (and pay tax) only as you receive payment. TurboTax makes this calculation for you.
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 sales", and hit Enter. The first result should be "jump to installment sales". Click on this link to go directly to the input screen for this
topic.
See the screenshot below for the box to check when you begin the interview. Follow the interview to enter the information about your sale from Form 1099-S, the payments you received this year, and to see the amount of capital gains that will be reported on this year's tax return.
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