Installment sale 6252 buyers SSN is unavailable, entering all 9's gives error, can I still efile and turn off error checking?

[Just-Lisa-Now-]

I'm sure this isn't all that uncommon that someone isn't willing to share their SSN for something like this.

[IRonMaN · Accepted solution]

The couple of times I have ran into that, I left the name, address, SS # info and interest box blank and just loaded the interest directly on schedule B.

[Just-Lisa-Now-]

There's no interest this first year, only cap gains on the down payment they received...Id really like to leave the 6252 in there.   Guess no harm in trying to get it through by disabling error checking, worse case it rejects and bounces back, right?

[IRonMaN]

You can leave the 6252 in and still use error checking, just don't fill out anything in the buyer's personal information section.

[Just-Lisa-Now-]

hmmm completely blank?  I hadn't tried that.  I had a name entered and it errored me for the rest of the info.   I'll try that when Im back in the office.

[IRonMaN]

Yes, completely blank.

[Just-Lisa-Now-]

thank you!

[IRonMaN]

You betcha!

[Just-Lisa-Now-]

Ahhh, its the Sale to a related party name box that's giving me the error....the property got sold to an uncle, he doesn't want to give up his SSN though  (there's huge family drama!).  

This real estate has been in the family for generations, owned by a bunch of different family members, all undivided ownership...they all had to sell or none of them could sell...they've been fighting over it for decades!  The uncle ended up buying out the family members that are my clients and they are carrying note.

I don't see many installment sales, how important is it whether we report it as a related party sale or not?

[IRonMaN]

I don't know that an uncle necessarily falls into the related party category.

[George4Tacks]

https://www.law.cornell.edu/uscode/text/26/267 (c)(4) The family of an individual shall include only his brothers and sisters (whether by the whole or half blood), spouse, ancestors, and lineal descendants

[George4Tacks]

They are often less related when you have to sit down to a meal with them, like at Thanksgiving.

[George4Tacks]

What was sold? Do you need to have buyer and seller both complete 8594? 

Schedule B only requires SSN when it is seller financed interest for a PERSONAL RESIDENCE. Even then, if the buyer doesn't care about deducting the mortgage, why should we care? 

If it is interest on a rental, then the buyer probably should be issuing a 1099 to the seller, so again, why should we care?

EDIT - I have added a photo of the ceiling over my desk that I often used for basis calculations. 

[Just-Lisa-Now-]

A piece of property that was sold, not a sale of business.   I don't think the 8594 comes into play here.

[George4Tacks]

Property is often part of a business sale. Goodwill is property. Just askin!

[Just-Lisa-Now-]

Piece of property in the family for a loooong time, split 3 ways between parents and kids.  Played hell finding basis, using court records multiple family members owned "undivided" portions of multiple land tracts.  Ugh!

[George4Tacks]

Ah! Real Property. That one word "Real" Really helps to define.
I had numbers stuck to my ceiling just for that type of problem. There were so many dart holes in the ceiling when I sold the practice, they thought there were termites.