ThomasM125
Expert Alumni

Business & farm

The gain on sale would be capital gain income for the most part, unless you had depreciation recapture, in which case some of the income could be considered ordinary income. 

 

You report it in TurboTax under "Income and Expenses", then "Less Common Income", then "Installment Sales". You will be asked to enter the sales proceeds, basis of the property and amount of any prior depreciation taken.

 

Once your gross profit is determined, you will be taxed on that percentage of the proceeds you receive in the current year.

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