Equipment and blue sky was sold on installment. Equipment had to be all recaptured, so the taxes were paid on the full selling price of the equipement in the year of sale and installment was done on blue sky. Equipment has been repossessed and blue sky eliminated. Do I set up the equipment repossessed on depreciation for the amount that we paid taxes on? Does the installment sale on the blue sky just disappear, or what form or statement needs to be put with this year's return. No money was received in 2008.