Taxes: Help with an Installment Sale
I sold a small business this year where the buyer will pay me over the next 5 years. I've had the business since 2008, so I know that it is a capital gain.
The contract was set up so that X amount went to the domain and website, $525 was for equipment, and the balance was goodwill.
The buyer made a $4000 down payment, of which $525 was for the miscellaneous equipment (used telephone used copier etc.) Monthly payments started January 1 of this year, so no interest to report this year.
I know that I need to use form 4797 and 6252 to report the sale.
It seems I need to report the $4000 down payment, but of that, $3475 goes towards the principal, and the $525 I believe is taxable to me and I am uncertain where to or how to report that $525.
I'm using TurboTax, and it would probably cost me more than $500 to get an accountant involved for what I thought was going to be something relatively simple.
Can anyone help me with this?