Alistair1
Level 1
02-05-2021
10:46 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Does anyone know if an installment sale is a reportable transaction on Form 8886?
Best Answer Click here
Labels
sjrcpa
Level 15
02-05-2021
10:51 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Only if it otherwise fits into one of the listed transaction categories.
The more I know the more I don’t know.
Level 11
02-05-2021
10:54 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
If you've got more than $5 million of deferred proceeds across all of your installment sales, you have to calculate interest on the deferred tax. If this applies to you, let me know and I can find you a code section reference and an explanation of how to do the calculation.
An installment sale is not necessarily a reportable transaction for Form 8886 purposes.
Box 17 Code AC is a generic "other information" code, and it's unlikely that it requires overriding.
Alistair1
Level 1
02-06-2021
01:03 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thanks so much. This was quite helpful.
dsocpa
Level 7
05-01-2022
02:09 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Maybe not required, but it automatically populates now and I get an error I can't seem to clear when I remove it.