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How to enter a prior year installment sale on Form 6252 in Lacerte

SOLVEDby IntuitLacerte Tax52Updated July 14, 2022

Follow these steps to enter a prior year installment sale for Form 6252, Installment Sale Income:

  1. Go to the Dispositions screen for the applicable module:
    • Individual: Screen 17
    • Corporate: Screen 15
    • Partnership: Screen 19
    • S Corporate: Screen 23
  2. Select the asset or select Add from the left panel.
  3. Enter the applicable asset information in section Dispositions (Schedule D, 4797, etc.).
  4. Scroll down to the Prior Year Installment (6252) section.
    1. Enter the Gross Profit Ratio (.xxxx or 1=100%).
    2. Enter the Current Year Principal Payments (triggers 6252).
  5. Scroll down to the Installment Sale Principal Payments Worksheet section.
  6. Enter any prior years' payments in the worksheet (if applicable). Entries in this grid are used to generate a principal payment worksheet. The total of the prior year principal payments carry to Form 6252 line 23. If principal payments are entered in the grid, don't make an entry in Prior year's payments [O] (code 37), as an entry here suppresses the worksheet.
    1. Enter the Year the principal payments were received.
      • If the year entered is before the current tax year, it'll be treated as a payment received in a prior year on Form 6252.
      • If no year is entered, or the year entered is the current tax year, it'll be treated as a current year principal payment on Form 6252.
      • If a negative year is entered Various prints on the worksheet.
    2. Enter the Principal Payments received.
    3. Enter the Total Gain. This is the amount of installment income realized in the previous year (6252 Line 24). If the year entered is equal to the current tax year, or if no year is entered, the entry ignored.
    4. Enter the Ordinary Income. This is the amount of ordinary income realized in the previous year (6252 Line 25). If the year entered is equal to the current tax year, or if no year is entered, the entry ignored.
    5. Enter the Unrecaptured 1250. This is the amount of unrecaptured 1250 gain realized in the previous year. If the year entered is equal to the current tax year, or if no year is entered, the entry ignored.

The program will carry the installment sale to the next year's program during the proforma process. If you don't want to transfer the information, enter a 2 in 1=delete this year, 2=delete next year at the end of the section Disposition (Schedule D, 4797, etc.).

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