Self employed

Hi –

Based on your description, it sounds like you may have an Installment Sale.

Here are a few links that will give you more information.

https://www.irs.gov/taxtopics/tc705

https://www.irs.gov/publications/p537

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1040/installment-sale

If this is an Installment Sale, the tax amount is spread out over the three years vs paying all the taxes in the year of sale.

You will also have to report this sale to California. Here is more information about California.

https://www.ftb.ca.gov/pay/withholding/real-estate-installment-sales.html

I suggest you reach out to a local tax professional, before the end of the year, to assist you with tax planning for the next few years.