You will report it as an installment sale. If the sale and all payments are being made in 2024, you would simply treat it as a sale. Since the initial payment was made in 2023, you would include in your income the amount that was received in 2023 on the 2023 return and then what you receive in 24 in your 2024 return.
To enter this sale in TurboTax you will select the following:
- Federal
- Income and Wages
- Installment Sales Under Miscellaneous Income
- Walk through and enter all of the information for the entire property
- Enter the payments received in 2023
- TurboTax will do the calculations from there
Be sure to delete the entries for the 1099S
The sale of timber from your personal property is a taxable event, so yes, you would report the income.
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