Fillable Form 6252 - Installment Sale Income

Form 6252 (2017)

Page

Line 21

Line 26

Line 33

Enter all money and the FMV of any

For trade or business property held more

If you completed Part II, enter the sum of

property or services you received in

than 1 year, enter this amount on Form

lines 22 and 23. Otherwise, enter all money

2017. Include as payments any amount

4797, line 4. If the property was held 1

and the FMV of property you received

withheld to pay off a mortgage or other

year or less or you have an ordinary gain

before 2017 from the sale. Include allocable

debt or to pay broker and legal fees.

from the sale of a noncapital asset (even

installment income and any other deemed

Generally, don’t include as a payment

if the holding period is more than 1 year),

payments from prior years. Don’t include

the buyer’s note, a mortgage, or other

enter this amount on Form 4797, line 10,

interest, whether stated or unstated.

debt assumed by the buyer. However, a

and write “From Form 6252.” If the

Line 36

note or other debt that is payable on

property was section 1250 property

See the instructions for line 25. Don’t

demand or readily tradable in an

(generally, real property that you

enter on line 36 more than the amount

established securities market is

depreciated) held more than 1 year,

considered a payment. For sales

figure the total amount of unrecaptured

shown on line 35. Any excess must be

reported in future years on Form 6252 up

occurring before October 22, 2004, a

section 1250 gain included on line 26

to the taxable part of the installment sale

note or other debt is considered a

using the Unrecaptured Section 1250

until all of the recapture has been

payment only if it was issued by a

Gain Worksheet in the Instructions for

reported.

corporation or governmental entity. If

Schedule D (Form 1040).

you didn’t receive any payments in 2017,

For capital assets, enter this amount

Line 37

enter zero. If in prior years an amount

on Schedule D as a short- or long-term

See the instructions for line 26.

was entered on the equivalent of line 34

gain on the lines identified as from Form

of the 2017 form, don’t include it on this

6252.

Paperwork Reduction Act Notice. We

line. Instead, enter it on line 23. See

Part III—Related Party

ask for the information on this form to

Pledge Rule, earlier, for details about

carry out the Internal Revenue laws of

proceeds of debt secured by installment

Installment Sale Income

the United States. You are required to

obligations that must be treated as

give us the information. We need it to

payments on installment obligations.

Line 29

ensure that you are complying with these

Line 23

If one of the conditions is met, check the

laws and to allow us to figure and collect

appropriate box and skip lines 30

the right amount of tax.

Enter all money and the FMV of property

through 37. If you checked box 29e,

or services you received before 2017

You are not required to provide the

attach an explanation. Generally, the

from the sale. Include allocable

information requested on a form that is

nontax avoidance exception will apply to

installment income and any other

subject to the Paperwork Reduction Act

the second disposition if:

deemed payments from prior years.

unless the form displays a valid OMB

• The disposition was involuntary (for

control number. Books or records

Deemed payments include amounts

example, a creditor of the related party

relating to a form or its instructions must

deemed received because of:

foreclosed on the property or the related

be retained as long as their contents

• A second disposition by a related

party declared bankruptcy), or

may become material in the

party, or

administration of any Internal Revenue

• The disposition was an installment sale

• The pledge rule of section 453A(d).

under which the terms of payment were

law. Generally, tax returns and return

substantially equal to or longer than

information are confidential, as required

Line 25

by section 6103.

those for the first sale. However, the

Enter here and on Form 4797, line 15,

resale terms must not permit significant

The time needed to complete and file

any ordinary income recapture on

deferral of recognition of gain from the

this form will vary depending on

section 1252, 1254, or 1255 property for

first sale (for example, amounts from the

individual circumstances. The estimated

the year of sale or all remaining

resale are being collected sooner).

burden for individual taxpayers filing this

recapture from a prior year sale. Don’t

form is approved under OMB control

Line 30

enter ordinary income from a section 179

number 1545-0074 and is included in the

expense deduction. If this is the year of

If the related party sold all or part of the

estimates shown in the instructions for

sale, complete Form 4797, Part III. The

property from the original sale in 2017,

their individual income tax return. The

amount from line 27c, 28b, or 29b of

enter the amount realized from the part

estimated burden for all other taxpayers

Form 4797 is the ordinary income

resold. If part was sold in an earlier year

who file this form is shown below.

recapture. Don’t enter any gain for this

and part was sold this year, enter the

Recordkeeping .

. 1 hr., 18 min.

property on line 31 or 32 of Form 4797. If

cumulative amount realized from the

you used Form 4797 only to figure the

resale.

Learning about the law

recapture on line 25 or 36 of Form 6252,

or the form

. 24 min.

Amount realized. The amount realized

enter “N/A” on lines 31 and 32 of Form

from a sale or exchange is the total of all

Preparing the form

. 1 hr.

4797.

money received plus the FMV of all

Copying, assembling, and

Also report on this line any ordinary

property or services received. The

sending the form to the IRS

. 20 min.

income recapture remaining from prior

amount realized also includes any

years on section 1245 or 1250 property

If you have comments concerning the

liabilities that were assumed by the

sold before June 7, 1984.

accuracy of these time estimates or

buyer and any liabilities to which the

suggestions for making this form

property transferred is subject, such as

Don’t enter on line 25 more than the

simpler, we would be happy to hear from

real estate taxes or a mortgage. For

amount shown on line 24. Any excess

you. See the instructions for the tax

must be reported in future years on Form

details, see Pub. 544, Sales and Other

return with which this form is filed.

6252 up to the taxable part of the

Dispositions of Assets.

installment sale until all of the recapture

has been reported.

Form 6252 - Installment Sale Income - 2017 Page 4

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