Installment Sale

callwzrd · ‎April 1, 2020

I have had an installment sale every year since 2016, due incremental sales of my business (LLC). I am only receiving payments from the 2016 sale, so there were no payments to report for the 2019 sale. Although all four sales show up on the Form screen, TurboTax only printed the 2016 Form for filing this year. I believe there should have been a Form 6252 printed for 2019, but there wasn't one on the review copy (I have eFiled my Federal Return). Is this going to be a problem? It doesn't affect taxable income, but may affect whether I have a qualified installment sale for 2019 since there wasn't a Form 6252 filed with the return.

ThomasM125 · ‎April 2, 2020

If you received a payment in 2019 for an installment sale that occurred in 2016, then there should have been a form 6252 generated. Did you enter the sale proceeds payment for 2019 in the installment sales section of TurboTax?

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callwzrd · ‎April 2, 2020

Thanks, Thomas.

I entered in the new installment sale (for 2019) on a new form and also entered in the payments received in 2019 for the 2016 installment sale on a second form. There were no payments received in 2019 for the 2019 sale.

I believe there should be two Forms 6252 prepared. One for the 2016 sale, to report the payments received, and one for the 2019 sale. Only one Form 6252 was prepared (for the payments received on the 2016 sale).