I believe the solution is pretty much this but Lacerte does not provide much functionality to do this. 

When a liquidating distribution consists of an installment obligation subject to installment sale reporting, the reporting process becomes more complex. Here's how you would typically handle it:

• Schedule K-1: Prepare Schedule K-1 for each shareholder, as usual. Report the liquidating distribution in Box 16, using Code D to signify that it's a non-dividend distribution. Additionally, provide the necessary information regarding the installment obligation in the supplemental information section or attached statements.
• Form 1120-S: On Form 1120-S, report the liquidating distribution as you would for any other distribution in Part II, Line 17. However, because it involves an installment obligation, additional reporting is necessary.
• Form 6252: Prepare Form 6252, Installment Sale Income, to report the installment sale. This form is used to report income from sales where the seller receives payments over more than one tax year. Provide details of the installment obligation, including the principal amount, interest, and any other relevant information. This information is typically derived from the terms of the installment agreement.
• Attach Supporting Documentation: Along with Form 1120-S, attach any supporting documentation related to the installment obligation. This may include copies of the installment agreement, schedules detailing the payments, and calculations of gain or loss.
• Shareholder Reporting: Shareholders will receive information on the liquidating distribution and installment obligation on their Schedule K-1. They will need to report the installment sale income on their individual tax returns using Form 6252, if applicable.