There were several good ??'s for me to analyze to figure out how to handle this transaction. I am merely unsure on how to record the transaction at hand. Hoping to get some insight while learning.

The sales agreement is selling the Retail grocery business to the two owners. As stated above the purchase price is 720,0000.00, cash paid 510,000.00 and the remaining amount is in an installment sale of 210,000.00. My problem is they both received a 1099-S for the sale of real estate in the amount of 720,000.00. Each have an installment sale set up through the title company for 210,000.00. This doubles everything. I will reach out to the title company and see if I can come up with something.

I did not prepare the 1065 partnership return which has been e filed. These clients brought me their taxes to process with the K-1 from the above retail grocery business. On the K-1 line 20 P it shows:

Date acquired, date sold, selling price (720,000.00), gross profit, gross profit ratio, contract less money received (510,000.00), installment sale income, deferred obligation (210,000.00), partners percentage 50%, partners share of deferred obligation 105,000.00. Possibly if someone can tell me where to put K-1 Line 20P information, that will clear things up on paper.

Thank you for any additional input