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    • Created with Sketch. In anticipation of the upcoming May 15th deadline, we've compiled a list of the most common questions here.
    Created with Sketch. In anticipation of the upcoming May 15th deadline, we've compiled a list of the most common questions here.
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    Installment Sale

    cclark
    Level 3
    ‎02-16-2022 07:52 AM

    I have a client who has a small parcel of land that he wants to sell and basically carry the buyer. Do I fill out the installment sale form 6252? The buyer will pay interest and then there will be a balloon payment at the end of the term. Thanks!

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    PATAX
    Level 15
    ‎02-16-2022 08:00 AM

    Yes fill out the applicable worksheet for the installment sale. ProSeries does an excellent job on this. Each future year you will enter the principal payments received and the interest payments received and it'll calculate the gain on the principal and of course the interest is all taxable. Just my opinion

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    2 Comments 2
    PATAX
    Level 15
    ‎02-16-2022 08:00 AM

    Yes fill out the applicable worksheet for the installment sale. ProSeries does an excellent job on this. Each future year you will enter the principal payments received and the interest payments received and it'll calculate the gain on the principal and of course the interest is all taxable. Just my opinion

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    dkh
    Level 15
    ‎02-16-2022 08:10 AM

    He wants to sell...so he hasn't yet.  The 6252 will go with the tax return in the year the sale actually happens.   If it were me, I'd ask for a copy of the contract

     

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