Before you start:
- Beginning in tax year 2019, the 6252 part 1 needs to be completed for each year the installment agreement is active. This will calculate the gain for the tax return.
- Sales of building and land are typically treated as two sales. If both sales don't qualify for installment agreement reporting, you must use separate asset entry worksheets.
- The 6252 can only be used for sales that result in a gain, even if payment arrangements are made.
To create a new installment agreement:
- From the Forms menu, select Open Forms.
- Select the 6252 from the list and click OK.
- Complete the General Information Smart Worksheet.
- Open the Asset Entry Worksheet for the property involved in the installment sale.
- Scroll down to the Dispositions section and enter the sale information.
- Double-click in the field Double-click to link sale to Form 6252 and choose the 6252 you created in step 3.
- Repeat steps 4-6 for any additional assets involved in the sale.
- Open the 6252 and complete the Payments Received Smart Worksheet.
If more than two assets are linked to a single Form 6252 and you are e-filing you'll need to override the Date Acquired and disable the e-file error checking before transmitting the return.