From the Purdue Online Writing Lab (OWL)
Place direct quotations that are 40 words, or longer, in a free-standing block of typewritten lines, and omit quotation marks. Start the quotation on a new line, indented 1/2 inch from the left margin, i.e., in the same place you would begin a new paragraph. Type the entire quotation on the new margin, and indent the first line of any subsequent paragraph within the quotation 1/2 inch from the new margin. Maintain double-spacing throughout. The parenthetical citation should come after the closing punctuation mark.
Jones's (1998) study found the following:
Students often had difficulty using APA style,
especially when it was their first time citing sources. This difficulty could be attributed to the fact that many students failed to purchase a style manual or to ask their teacher for help. (p. 199)