Form 6252

[Taxlady67]

My client is an S-Corporation and I am working on Form 6252 in the 1120-S.  My client sold his business on an installment basis.  I sold the tangible assets in the AEW sheets most of this information was transferred to Forms 4797 with the exception of assets that had a 179 deduction.  I am trying to get Form 6252 to calculate the correct percentage for the Sale.  He sold for $250,000 and received $100,000 this year.  The form requires the same information that is in AEW.  It would appear that this document is not calculating correctly.  Is there another way to enter this information so Form 6252 will work?

[dkh]

When you say the client sold business on installment sale - do you mean just the assets, or assets and inventory, or something else? 

Maybe IRS Pub 537 on Installment sales will help.   

[IRonMaN]

As a side note, you are aware that gain created by depreciation recapture is all reported in the year of sale?

[abctax55]

AND sale of assets with Sect 179 is separately reported on the shareholder K-1, page 2. 

[Taxlady67]

The  Client sold the all assets that were depreciated and the sale included intangibles such as business reputation, and goodwill.  I have taken care of the sale of assets that had 179 deductions and the other assets that were sold.  I need to get the intangibles sold.  Client was paid this year for the depreciated assets.  None of the sold assets transferred to Form 6252.  If I enter this information directly on Form 6252 it appears that this is the same information entered in the AEW worksheets?

[Taxlady67]

Thank you.  I have that part taken care of. I can't get the Form 6252 to calculate correctly.  Not sure what I am doing wrong.