Installment Sales

Forum|Forum|4 years ago
January 14, 2022
12 replies
130 views

I sold my business last year on an installment sale. I filed my business taxes (as a last filing) using TT Business. In the process I filled out form 6252 for 51 individule assets for the first year of the installment sale. This year I have to report payments and gains for the second year of the installment sale using TT Deluxe for my 1040. I assumed I needed to do another 51 iterations for form 6252 for the second year. However TT Deluxe imposes a maximun limit of 25 entries. What do I do?

Best answer by DianeW777

So I can handle it with a single Form 6252 for the whole of the business?

Yes, if it's one sale, to one buyer, there is only one Form 6252 used in the tax return. The following links are available for your convenience.

Anonymous_

Level 15

How was this sale handled, exactly, and did you prepare a return for an entity in TurboTax Business?

Mike9241

Level 15

what type of entity owned the business and was the business liquidated?

Mike9241

DianeW777

Level 15

A Multi-member LLC. Me and my wife. I did all the 6252 forms and we took a huge hit on our form 4797 net gain. From what I can see everything going forward is simple capital gains so it seems as if I can handle everything on a single 6252 in the 1040 for "Sale of Business in Prior Year".

Yes, that is correct. When an installment sale occurs all of the depreciation is required to be recaptured in the year of sale. For this reason all future collections, if applicable, will be capital gain. The Form 6252 is used each year, which then carries the gain to the appropriate schedule, until the sale is complete.

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