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April 13, 2025
Question

Can installment method be used to report sale of nonemployee stock with negative basis?

  • April 13, 2025
  • 1 reply
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I sold all of stock in a private company (no employment) which had a negative basis (due to historic loss).. Turbo Tax does not allow begative basis. There is also a deferred payment. Can I use installment sale method?

 

 

1 reply

PatriciaV
Employee
April 17, 2025

Your basis in the stock cannot fall below zero. And, no, you can't report an installment sale that results in a loss.

 

However, you may be able to report the sale of stock as an installment sale using the steps listed in this post from 2019. Note that the menus may have changed and your result may vary.

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