Fillable Form 6252 - Installment Sale Income

Form 6252 (2017)

Page

refinanced debt immediately before the

If there is no stated maximum selling

• Deductions claimed under section

refinancing. Also, the pledge rule doesn’t

price, such as in a contingent payment

1253(d)(2) and (3) (as in effect before

affect refinancing due to the calling of a

sale, attach a schedule showing the

enactment of P.L. 103-66).

debt by the creditor if the debt is then

computation of gain. Enter the taxable

• Basis reduction to investment credit

refinanced by a person other than this

part of the payment on line 24 and also

property.

creditor or someone related to the

on line 35 if Part III applies. See

Subtract the following recapture

creditor.

Temporary Regulations section

amounts and credits previously allowed

15A.453-1.

Interest on Deferred Tax

with respect to the property.

Line 6

• Section 179 or 280F.

Generally, you must pay interest on the

deferred tax related to any obligation

Enter only mortgages or other debts the

• Clean-fuel vehicles and refueling

that arises during a tax year from the

buyer assumed from the seller or took

property.

disposition of property under the

the property subject to. Don’t include

• Investment credit amount.

installment method if:

new mortgages the buyer gets from a

• Credit for employer-provided childcare

bank, the seller, or other sources.

• The property had a sales price over

facilities and services.

$150,000, and

Line 8

• Alternative motor vehicle credit.

• The aggregate balance of all nondealer

Enter the original cost and other

• Alternative fuel vehicle refueling

installment obligations arising during,

expenses you incurred in buying the

property credit.

and outstanding at the close of, the tax

property. Add the cost of improvements,

year is more than $5 million.

• Qualified plug-in electric drive motor

etc., and subtract any casualty losses

vehicle credit.

You must pay interest in subsequent

and any of the following credits

years if installment obligations that

previously allowed with respect to the

• Qualified plug-in electric vehicle credit.

originally required interest to be paid are

property.

• Qualified electric vehicle credit.

still outstanding at the close of a tax

• Nonbusiness energy property credit.

Line 11

year.

• Residential energy efficient property

The interest rules don’t apply to

Enter sales commissions, advertising

credit.

dispositions of:

expenses, attorney and legal fees, and

• Adoption credit.

other selling expenses incurred to sell

• Farm property,

• District of Columbia first-time

the property.

• Personal use property by an individual,

homebuyer credit.

Line 12

• Real property before 1988, or

• Disabled access credit.

Any ordinary income recapture under

• Personal property before 1989.

• New markets credit.

section 1245 or 1250 (including sections

See section 453(l) for more information

• Credit for employer-provided childcare

179 and 291) is fully taxable in the year

on the sale of timeshares and residential

facilities and services.

of sale even if no payments were

lots under the installment method.

received. To figure the recapture

• Energy efficient home credit.

How to report the interest. The interest

amount, complete Form 4797, Part III.

• Alternative motor vehicle credit.

isn’t figured on Form 6252. See Pub. 537

The ordinary income recapture is the

• Alternative fuel vehicle refueling

for details on how to report the interest.

amount on line 31 of Form 4797. Enter it

property credit.

on line 12 of Form 6252 and also on line

Additional Information

• Qualified railroad track maintenance

13 of Form 4797. Don’t enter any gain

See Pub. 537 for additional information,

credit.

for this property on line 32 of Form 4797.

including details about reductions in

If you used Form 4797 only to figure the

• Enhanced oil recovery credit.

selling price, the single sale of several

recapture amount on line 12 of Form

• Qualified plug-in electric drive motor

assets, like-kind exchanges, dispositions

6252, enter “N/A” on line 32 of Form

vehicle credit.

of installment obligations, and

4797. Partnerships and S corporations

• Qualified plug-in electric vehicle credit.

and their partners and shareholders, see

repossessions.

the Instructions for Form 4797.

• Qualified electric vehicle credit.

Specific Instructions

Line 14

For additional information, see Pub.

551, Basis of Assets.

Part I—Gross Profit and

Don’t file Form 6252 if line 14 is zero or

less. Instead, report the entire sale on

Line 9

Contract Price

Form 4797, Form 8949, or the Schedule

Enter all depreciation or amortization you

D for your tax return.

Line 5

deducted or were allowed to deduct

Line 15

from the date of purchase until the date

Enter the total of any money, face

of sale. Adjust the depreciation or

amount of the installment obligation, and

If the property described on line 1 was

amortization amount by adding any of

the FMV of other property or services

your main home, you may be able to

the following deductions previously

that you received or will receive in

exclude part or all of your gain. See Pub.

taken with respect to the property.

exchange for the property sold. Include

523, Selling Your Home, for details.

on line 5 any existing mortgage or other

• Section 179 expense.

Part II—Installment Sale

debt the buyer assumed or took the

• Commercial revitalization deduction.

property subject to. Don’t include stated

Income

• Deduction for clean-fuel vehicles and

interest, unstated interest, any amount

refueling property.

recomputed or recharacterized as

Line 19

interest, or original issue discount.

• Deductions claimed under sections

Enter the gross profit percentage

190 and 193.

(expressed as a decimal amount)

determined for the year of sale even if

you didn’t file Form 6252 for that year.

Form 6252 - Installment Sale Income - 2017 Page 3

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