Form 6252 Installment sale

Forum|Forum|3 years ago
August 30, 2022
1 reply
17 views

I am trying to complete a Form 6252 installment sale on some farm land that was distributed from a trust. I do not have and asset entry worksheet for the property since it was distributed and sold in 2021, so it is not tied to a Schedule E or Schedule F or a K-1 from a Sub S corp or partnership. How do I create an asset entry worksheet for an asset of this type that is not going to be depreciated? or do I need to?

ProSeries Basic

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Just-Lisa-Now-

Intuit Community Champion

You dont need an asset entry worksheet for this, just fill out the sale info on the 6252.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

S

s-cainAuthor

Level 3

I've tried that but the payment information worksheet lines 20 and 21 don't appear on the form 6252 Line 21. The client did not receive a payment of principal or interest in 2021 but I can't enter a zero on line 21 of Form 6252. Is that correct the software assumes that since the sale occurred in 2021 that there was no payment of principal or interest?

T

TaxGuyBill

Level 15

@s-cain wrote:

The client did not receive a payment of principal or interest in 2021 but I can't enter a zero on line 21 of Form 6252.

No payments equals no Form 6252.

It is technically not needed and is wrong, but if you are uncomfortable with the sale happening in 2021 and not mentioning it at all on the tax return, I suspect that your client would be okay if you reported that they received $1.

As a side note, I find it rather unusual that the sale happened and there were absolutely no payments at all (not even a down payment). So you may want to double-confirm that with the client.

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