Hi all,

I have a client who has an installment sale on her return.  She reported to me that it was paid in full with a balloon payment.  The payment was evidently at a discount if paid in full, because the payment does not equal the amount of money still owed.  I tried looking this up on my own and saw that you have to manually change the gross profit percentage and to use worksheet B, but I can't find that?  How would you report this situation?  I appreciate any input.

Thanks!