Yes. Payments received over multiple years are called installment sales.
Here’s how to enter an installment sale in TurboTax:
- Type installment sales in Search in the top right
- Select Jump to installment sales
- On Any Other Property Sales? Select Sales of real estate, cars, or anything else for which you receive payments over two or more years.
- Enter the rest of your info
You will report the sale every year. TurboTax will figure out your gross profit percentage this year. That’s the taxable portion of the payment. The other part is principal paid, much like a mortgage.
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