Fillable Form 6252 - Installment Sale Income

Form 6252 (2014)

Page

amount of the refinanced debt

If there is no stated maximum selling

• Deductions claimed under section

immediately before the refinancing. Also,

price, such as in a contingent payment

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

the pledge rule does not affect

sale, attach a schedule showing the

enactment of P.L. 103-66).

refinancing due to the calling of a debt

computation of gain. Enter the taxable

• Basis reduction to investment credit

by the creditor if the debt is then

part of the payment on line 24 and also

property.

refinanced by a person other than this

on line 35 if Part III applies. See

Subtract the following recapture

creditor or someone related to the

Temporary Regulations section

amounts and credits previously allowed

creditor.

15A.453-1.

with respect to the property.

Interest on Deferred Tax

Line 6

• Section 179 or 280F.

Generally, you must pay interest on the

Enter only mortgages or other debts the

• Clean-fuel vehicles and refueling

deferred tax related to any obligation

buyer assumed from the seller or took

property.

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

• Investment credit amount.

installment method if:

bank, the seller, or other sources.

• Credit for employer-provided childcare

• The property had a sales price over

facilities and services.

Line 8

$150,000, and

• Alternative motor vehicle credit.

Enter the original cost and other

• The aggregate balance of all nondealer

expenses you incurred in buying the

• Alternative fuel vehicle refueling

installment obligations arising during,

property. Add the cost of improvements,

property credit.

and outstanding at the close of, the tax

etc., and subtract any casualty losses

year is more than $5 million.

• Qualified plug-in electric drive motor

and any of the following credits

vehicle credit.

You must pay interest in subsequent

previously allowed with respect to the

• Qualified plug-in electric vehicle credit.

years if installment obligations that

property.

originally required interest to be paid are

• Qualified electric vehicle credit.

• Nonbusiness energy property credit.

still outstanding at the close of a tax

• Residential energy efficient property

Line 11

year.

credit.

Enter sales commissions, advertising

The interest rules do not apply to

• Adoption credit.

expenses, attorney and legal fees, etc.,

dispositions of:

• District of Columbia first-time

incurred to sell the property.

• Farm property,

homebuyer credit.

Line 12

• Personal use property by an individual,

• Disabled access credit.

Any ordinary income recapture under

• Real property before 1988, or

• New markets credit.

section 1245 or 1250 (including sections

• Personal property before 1989.

• Credit for employer-provided childcare

179 and 291) is fully taxable in the year

See section 453(l) for more information

facilities and services.

of sale even if no payments were

on the sale of timeshares and residential

received. To figure the recapture

• Energy efficient home credit.

lots under the installment method.

amount, complete Form 4797, Part III.

• Alternative motor vehicle credit.

How to report the interest. The

The ordinary income recapture is the

• Alternative fuel vehicle refueling

interest is not figured on Form 6252. See

amount on line 31 of Form 4797. Enter it

Pub. 537 for details on how to report the

property credit.

on line 12 of Form 6252 and also on line

interest.

13 of Form 4797. Do not enter any gain

• Qualified railroad track maintenance

for this property on line 32 of Form 4797.

credit.

Additional Information

If you used Form 4797 only to figure the

• Enhanced oil recovery credit.

recapture amount on line 12 of Form

See Pub. 537 for additional information,

• Qualified plug-in electric drive motor

6252, enter “N/A” on line 32 of Form

including details about reductions in

vehicle credit.

4797. Partnerships and S corporations

selling price, the single sale of several

and their partners and shareholders, see

• Qualified plug-in electric vehicle credit.

assets, like-kind exchanges, dispositions

the Instructions for Form 4797.

of installment obligations, and

• Qualified electric vehicle credit.

repossessions.

Line 14

For additional information, see Pub.

551, Basis of Assets.

Specific Instructions

Do not file Form 6252 if line 14 is zero or

less. Instead, report the entire sale on

Line 9

Part I—Gross Profit and

Form 4797, Form 8949, or the Schedule

Enter all depreciation or amortization you

D for your tax return.

Contract Price

deducted or were allowed to deduct

Line 15

from the date of purchase until the date

Line 5

of sale. Adjust the depreciation or

If the property described on line 1 was

Enter the total of any money, face

amortization amount by adding any of

your main home, you may be able to

amount of the installment obligation, and

the following deductions previously

exclude part or all of your gain. See Pub.

the FMV of other property or services

taken with respect to the property.

523, Selling Your Home, for details.

that you received or will receive in

• Section 179 expense.

Part II—Installment Sale

exchange for the property sold. Include

• Commercial revitalization deduction.

on line 5 any existing mortgage or other

Income

• Deduction for clean-fuel vehicles and

debt the buyer assumed or took the

property subject to. Do not include

refueling property.

Line 19

stated interest, unstated interest, any

• Deductions claimed under sections

Enter the gross profit percentage

amount recomputed or recharacterized

190 and 193.

(expressed as a decimal amount)

as interest, or original issue discount.

determined for the year of sale even if

you did not file Form 6252 for that year.

Form 6252 - Installment Sale Income - 2014 Page 3

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