@s-cain   As I understand it, there were no building improvements on this farm, that it was a sale of bare farmland only.  However, you still might need to allocate some of the sale amount to the farmland improvements [fence, tile, etc] made to the farm and file Form 4797 to report depreciation recapture on said improvements.  The IRC Section 1245 recapture amount would be reported and taxed in the year of sale even if none of the proceeds were received in the year of sale.  The amounts reported on Form 4797 would then change the taxable gain on the Form 6252.  The Form 6252 capital gain percentage would be lower on contract proceeds received in the subsequent tax years. 

Is the S Corp reporting any existing farmland improvements when setting up its depreciation schedule for this farmland?