I have a sale of a partnership interest using the installment sale method. Payouts in future years meet the definition of contingent payments since they are based on future conditions that cannot be determined by the end of the tax year. Does someone know if Turbotax can support the required methods for contingent payments listed in the regs (i.e. maximum selling price, fixed payment period, etc)?
From Pub 537:
Contingent Payment Sale
A contingent payment sale is one in which the total selling price can’t be determined by the end of the tax year of sale. This happens, for example, if you sell your business and the selling price includes a percentage of its profits in future years.
If the selling price can’t be determined by the end of the tax year, you must use different rules to figure the contract price and the gross profit percentage than those you use for an installment sale with a fixed selling price.
For rules on using the installment method for a contingent payment sale, see Regulations section 15a.453-1(c)
