Sold a business on a 10 year contract in 2016. Receiving monthly payments of interest and principal and don’t know how to report it. Looks like 1099mis. But doesn’t work

[PatriciaV · Accepted solution]

Yes, you need to report the sale and the interest you received. This type of transaction is known as an Installment Sale. 

To enter an installment sale (Form 6252), open your return, use the Search box in the TurboTax header, and type in "Sale of Business Property."  Hit Enter, then click on "jump to sale of business property." You will see a screen titled "Any other property sales."  Check the box titled "Sales of real estate, cars or anything else for which you receive payments over two or more years."  Click Continue & the interview will guide you from there.

Note that if you received payments on this Installment Sale last year and did not report the income, you will need to file an amended return. See this post for more information: How to Amend (Change or Correct) a Return You Already Filed.