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wayneb1
Level 1

Stock sales

Private company we were invested in sold and proceeds paid in incremental stages that will span over several tax years.  How to report the proceeds as reported on 1099B for 2019 tax year when there is more money to be paid  in 2020?  

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wayneb1
Level 1

Stock sales

OK, but how does that take into consideration a loss with the sale of the stock?

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KarenM90
Level 11

Stock sales

You need to report this as an installment sale on Form 6252.  Here are the instructions to report the installment sale:

 

  • Click on "Search" and type "Installment Sales" in the window and hit Enter
  • Choose "Jump to Installment Sales"
  • On the page "Any Other Property Sales" check the box for: "Sales of real estate, cars, or anything else for which you receive payments over two or more tax years (installment sales)" and click Continue
  • On the Installment Sales page answer yes to "Do you want to report an installment sale?"
  • Continue through the interview and record the details of your Installment Sale

This is how Form 6252  for Installment Sales is reported in TurboTax.

 

The tricky part is your 1099B, if it is reporting the entire sale for 2019.  IRS will be looking for that sale on your Schedule D, so you can either leave it off Schedule D and expect a letter from IRS to which you will respond with the Installment Sale information or enter it, reporting the proceeds just as they are reported on the 1099B (under Stocks, Mutual Funds, Bonds, Other) but report an adjustment to the basis so that the basis is the same as the proceeds.  After you enter all of the 1099B Sale and Basis information you can choose that the basis is not correct to make this adjustment and use code Q (small business stock) or O (other sales) to identify the adjustment.

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wayneb1
Level 1

Stock sales

OK, but how does that take into consideration a loss with the sale of the stock?

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