Fillable Form 6252 - Installment Sale Income

Form 6252 (2012)

Page

Interest on Deferred Tax

Line 6

Subtract the following recapture

amounts and credits previously allowed

Generally, you must pay interest on the

Enter only mortgages or other debts the

with respect to the property.

deferred tax related to any obligation

buyer assumed from the seller or took

• Section 179 or 280F.

that arises during a tax year from the

the property subject to. Do not include

disposition of property under the

new mortgages the buyer gets from a

• Clean-fuel vehicles and refueling

installment method if:

bank, the seller, or other sources.

property.

The property had a sales price over

•

Line 8

• Investment credit amount.

$150,000, and

• Credit for employer-provided childcare

Enter the original cost and other

The aggregate balance of all nondealer

•

facilities and services.

expenses you incurred in buying the

installment obligations arising during,

property. Add the cost of improvements,

• Alternative motor vehicle credit.

and outstanding at the close of, the tax

etc., and subtract any casualty losses

year is more than $5 million.

• Alternative fuel vehicle refueling

and any of the following credits

property credit.

You must pay interest in subsequent

previously allowed with respect to the

years if installment obligations that

property.

• Qualified plug-in electric drive motor

originally required interest to be paid are

vehicle credit.

• Nonbusiness energy property credit.

still outstanding at the close of a tax

• Qualified plug-in electric vehicle credit.

• Residential energy efficient property

year.

credit.

• Qualified electric vehicle credit.

The interest rules do not apply to

• Adoption credit.

Line 11

dispositions of:

• District of Columbia first-time

• Farm property,

Enter sales commissions, advertising

homebuyer credit.

expenses, attorney and legal fees, etc.,

• Personal use property by an individual,

• Disabled access credit.

incurred to sell the property.

• Real property before 1988, or

• New markets credit.

Line 12

• Personal property before 1989.

• Credit for employer-provided childcare

Any ordinary income recapture under

See section 453(l) for more information

facilities and services.

section 1245 or 1250 (including sections

on the sale of timeshares and residential

• Energy efficient home credit.

179 and 291) is fully taxable in the year

lots under the installment method.

of sale even if no payments were

• Alternative motor vehicle credit.

How to report the interest. The

received. To figure the recapture

• Alternative fuel vehicle refueling

interest is not figured on Form 6252. See

amount, complete Form 4797, Part III.

property credit.

Pub. 537 for details on how to report the

The ordinary income recapture is the

interest.

• Qualified railroad track maintenance

amount on line 31 of Form 4797. Enter it

credit.

Additional Information

on line 12 of Form 6252 and also on line

• Enhanced oil recovery credit.

13 of Form 4797. Do not enter any gain

See Pub. 537 for additional information,

for this property on line 32 of Form 4797.

• Qualified plug-in electric drive motor

including details about reductions in

If you used Form 4797 only to figure the

vehicle credit.

selling price, the single sale of several

recapture amount on line 12 of Form

• Qualified plug-in electric vehicle credit.

assets, like-kind exchanges, dispositions

6252, enter “N/A” on line 32 of Form

of installment obligations, and

• Qualified electric vehicle credit.

4797. Partnerships and S corporations

repossessions.

and their partners and shareholders, see

For additional information, see Pub.

the Instructions for Form 4797.

551, Basis of Assets.

Specific Instructions

Line 14

Line 9

Part I—Gross Profit and

Do not file Form 6252 if line 14 is zero or

Enter all depreciation or amortization you

Contract Price

less. Instead, report the entire sale on

deducted or were allowed to deduct

Form 4797, Form 8949, or the Schedule

from the date of purchase until the date

Line 5

D for your tax return.

of sale. Adjust the depreciation or

Enter the total of any money, face

amortization amount by adding any of

Line 15

amount of the installment obligation, and

the following deductions previously

If the property described on line 1 was

the FMV of other property or services

taken with respect to the property.

your main home, you may be able to

that you received or will receive in

• Section 179 expense.

exclude part or all of your gain. See Pub.

exchange for the property sold. Include

• Commercial revitalization deduction.

523, Selling Your Home, for details.

on line 5 any existing mortgage or other

debt the buyer assumed or took the

• Deduction for clean-fuel vehicles and

Part II—Installment Sale

property subject to. Do not include

refueling property.

Income

stated interest, unstated interest, any

• Deductions claimed under sections

amount recomputed or recharacterized

190 and 193.

Line 19

as interest, or original issue discount.

• Deductions claimed under section

Enter the gross profit percentage

If there is no stated maximum selling

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

(expressed as a decimal amount)

price, such as in a contingent payment

enactment of P.L. 103-66).

determined for the year of sale even if

sale, attach a schedule showing the

• Basis reduction to investment credit

you did not file Form 6252 for that year.

computation of gain. Enter the taxable

property.

part of the payment on line 24 and also

on line 35 if Part III applies. See

Temporary Regulations section

15A.453-1.

Form 6252 - Installment Sale Income - 2012 Page 3

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