If the payments are being made according to the terms of the sale, which you said resulted in a loss, it doesn't matter that the later payments are larger. However, if part of the payment represents interest, then the interest portion is reportable as income. See this TurboTax tips article regarding imputed interest.
If you had a gain on the sale instead of a loss and reported the gain using the installment method, then a portion of the payment would be reported as income each year. An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. If you realize a gain on an installment sale, you may be able to report part of your gain when you receive each payment. This method of reporting gain is called the installment method. You can’t use the installment method to report a loss. You can choose to report all of your gain in the year of sale.
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