Form 6252 Installment Loans

[zellerred5]

To whom it may concern, 

I did an installment loan last year. 

Where do I find the steps for Form 6252 in the Step by Step part of the application?

I found it in the Forms part, but would prefer completing this in the Step by Step.

Thank you,

Thomas

[MayaD]

Can you please clarify if the asset you’re selling is shown as an asset on a business schedule, such as Schedule C, Schedule E, or Schedule F?

If it is, you should report the installment sale on that schedule. Otherwise, report it under sale of business property.

You can report part of your gain when you receive each payment, rather than all of your gain in the year of the sale. This is called the installment method. You can opt out of the installment method by reporting the gain in the year of the sale. However, you must make this election by the due date of your return, including extensions. You can't use the installment method to report a loss.

What is an installment sale?