For the sale of ISO stock in 2018 (private company acquired by a public company, ISO stock sold and paid out in cash), I received a 1099 B form that shows part of the proceeds. The rest of the proceeds are being held in escrow and will be paid out in 2019 and 2020.
I entered my 1099 B and the supporting Form 3921. TurboTax is showing full cost basis for the full amount that I will eventually receive (across 2018, 2019, and 2020), even though I only received part of the payout in 2018. I believe this means that I'm paying taxes only on the 2018 portion, but since I'm reporting my full cost basis now, I'd have a cost basis of 0 when I report the payments I receive in 2019 and 2020. Is this the correct way to report it?
I also entered this as an installment sale, in addition to entering my 1099 B. This now shows two extra line items on the bottom of my income summary. (1) Sale of business property, and (2) Installment sales. The total for each of these shows as 0. Is this correct?
