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3928topaz
New Member

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

I received a 1099-INT but nothing else.  It is a family company.  The company is buying back the shares of stock from me and I get quarterly check with payments to cover the stock sale re-purchase ($600,000 over 15 years).  Where do I put this in my taxes?  Please help!
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Accepted Solutions
TomYoung
Level 13

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

Use the "Installment Sales" interview down near the bottom of the "Wages & Income tab.

Enter the information required on the "Property Description" page and the "Sales Information" page.

Answer "Yes" on the "How Was This Item Used?" and select "No entry" on the "Select Business Activity" page.

"No" on "Passive Activities" page, $0 (I assume) on the "Debt Assumed by Buyer" page and then enter the principal and interest received in 2016 on the "Principal and Interest Received" page.

Leave the "Type of Business Property" boxes blank answer "No" on the "Depreciable Property" page.  You'll have to determine how the answer the "Related Party Sale?" page.

Tom Young


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7 Replies
TomYoung
Level 13

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

Use the "Installment Sales" interview down near the bottom of the "Wages & Income tab.

Enter the information required on the "Property Description" page and the "Sales Information" page.

Answer "Yes" on the "How Was This Item Used?" and select "No entry" on the "Select Business Activity" page.

"No" on "Passive Activities" page, $0 (I assume) on the "Debt Assumed by Buyer" page and then enter the principal and interest received in 2016 on the "Principal and Interest Received" page.

Leave the "Type of Business Property" boxes blank answer "No" on the "Depreciable Property" page.  You'll have to determine how the answer the "Related Party Sale?" page.

Tom Young


3928topaz
New Member

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

I tried that and it says I can't do it.  It says it can't be used for"sales of stocks, bonds, and other securities on an established stock market" Any other ideas would be much appreciated!
TomYoung
Level 13

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

You didn't do exactly as I instructed.  Look at my step by step.  Nowhere did I mention "stock".
3928topaz
New Member

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

Thank you.  One more question, when it asks me to report principal and interest, do I need to put both in here, even though I have already reported the interest by inputting a 1099-INT?  Thank you for your help!
3928topaz
New Member

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

Won't let me do it.  Automatically moved it to "Sale of Business Property" and that is definitely not what it was.  I did clarify with my family and you are correct that it should be listed under Installment Sales, but Turbo Tax won't let me do it.  Do I just need to NOT use this program????
TomYoung
Level 13

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

Go look at the pictures I attached to my answer.  It's working just fine for me, settling nicely onto Schedule D.
3928topaz
New Member

Need to put in capital gains for stock in a family company I am being distributed over fifteen years; where do I put it?

Yay, it worked!  Thank you so much for your help, Mr. Young.
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