If the sale resulted in a gain, report this an installment sale.
The easiest way to find this section of TurboTax is to open your return and use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in "installment sales", hit Enter, and click on "jump to installment sales" to go directly to beginning of this topic.
Or go to My Account >> Tools >> Topic Search. Type in "installment sales", then click the topic in the list to go directly to the start of this section.
(If you are using the mobile app and don't have My Account or Tools on your screen, try logging into TurboTax from a laptop or desktop browser.)
On the page "Any other property sales?" check the box for "Sales...for which you receive payments over two or more tax years" (see screenshot below - click to enlarge).
Continue to the page "Installment Sales for Business" and follow the prompts to enter the information on your sale. A portion of the gain will be reported each year, based on the principal payments you receive.
If you sold the stock at a loss, you are required to report the entire transaction in the year of the sale. The IRS prohibits installment sales that result in a loss.
IRS Pub 537 Sale at a loss: If your sale results in a loss, you cannot use the installment method. If the loss is on an installment sale of business or investment property, you can deduct it only in the tax year of sale.
In this case, go to Investment Sales, add a sale (with no 1099-B), and enter the transaction information as if you received the entire payment at the time of the sale.
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