An installment sale is a sale of property in which the taxpayer receives at least one payment for the sale after the tax year of the sale. If a sale qualifies to be an installment sale, the gain must be reported under the installment method unless the taxpayer elects not to use it and reports the full gain the same year the item was sold. The installment method cannot be used if there was a loss on the sale. Use Form 6252 to calculate the gain and carry the amounts to either Schedule D for capital assets or Form 4797 for property used in business.
To enter an installment sale in the tax program, from the Main Menu of the Tax Return (Form 1040) select:
- Income Menu
- Installment Sale (6252)
- Select 'New' or double-click the entry you wish to 'Edit'. Select 'Prior' if you prepared
the return using the software in the previous year and wish to pull the data forward.
NOTE: This is a guide on entering Form 6252 into the TaxSlayer Pro program. This is not intended as tax advice.