Can I override the Code "AC" on line 17 of a S Corp K-1?

[Alistair1]

Does anyone know if an installment sale is a reportable transaction on Form 8886?

[sjrcpa]

Only if it otherwise fits into one of the listed transaction categories.

[PhoebeRoberts · Accepted solution]

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]

Thanks so much. This was quite helpful.

[dsocpa]

Maybe not required, but it automatically populates now and I get an error I can't seem to clear when I remove it.