Sold a domain to be paid in 24 installments.

[Christine329]

We purchased a domain about 20 years ago to use personally. We sold it in 2025 to be paid in 24 installment payments to end in 2027. How do I report it in Turbo tax? It is not set up as asset in TurboTax. We also didn't receive any tax documents. 

[Vanessa A]

You will report it as an installment sale.  You do not need any tax documents to report this.  you can use your own records to report this sale. Since the initial payments were made in 2025, you will report the amount you received in 2025 and then for the next two years you will report the amount you receive for the year.  

To enter this sale in TurboTax you will select the following:

1. Federal
2. Income and Wages
3. Installment Sales Under Miscellaneous Income
4. Walk through and enter all of the information for the domain including description, date you acquired it, how much you sold it for (total sales prices) and your cost basis (what you paid for it, registration fees)
5. Enter the payments received in 2025 and enter the amount of interest received, if any, and hit continue.
6. TurboTax will do the calculations from there

[Christine329]

Thank you so much. That was so helpful.  One last question - Under Property Type Code which choice do I pick for a domain name: -Personal Property Sec 1275(b)(3) or All other Property types? The other choices were Timeshare or farming which I know it isn't.

Thank you again!

[MaxA1]

Personal Property Sec 1275(b)(3), since you mentioned this was your personal domain.  This section basically means Personal use property.