Question

Where and how do I report capital gains from an installment sale of a business in year 2? I only see a box to list another separate sale in Installment Sales section?

There was no sale in this tax year. We are just receiving income in the form of loan payments from the sale in the prior year (4 year loan agreement)

Here’s how to enter the second year of an installment sale:

Type installment sales in Search in the top right
Select Jump to installment sales
On Any Other Property Sales? Select Sales of real estate, cars, or anything else for which you receive payments over two or more years (installment sales)
On Installment Sales, tap Yes
Fill in the Property Description information
On Let’s get the details of your Installment sale, enter the Gross profit percentage and Amount of principal paid to you before 2021
You can find those amounts in Part II of your 2020 Form 6252
On Principal and Interest Received, enter your 2021 payments