QUESTION CONCERNING FORM 6252

[dr58lj15]

I have a client that I picked up that sold their business in 2024.  The accountant that they used figured 100% of their Capital Gain for the business and they paid that to the IRS.  The accountant, also, issued a 6252 Installment Sale Income form.  The buyer is paying for the business in installment loan payments with interest.  I have already researched, and I know I have to include the interest as income on schedule B.   Do I need to continue to file the 6252 each year which includes their principal payment which does not cause their tax liability to change.  Please note again, I am including the interest which is taxable.   The basis question is I do need to continue to include the 6252 form each year until this Installment loan is paid off, correct?

[dd4vols]

@dr58lj15   I have never sent the 6252 after the first year, if I reported the total gain in that first year. And I have several clients that do land deals where they are the financers for the payback period.  By reporting the Interest income on sch B, you are reporting all taxable transactions in the current year.

[dascpa]

Not usual but if they picked up 100% of the gain on sale in the 1st year then it's no longer a installment sale of the property. It is a loan receivable with interest.  At that point you are correct, you can report it on Schedule B directly.

If less than 100% reported in the 1st year then you do use the 6252 every year whereby you report the principal and interest. The interest will flow to the Schedule B and the deferred installment sale gain will be picked up as 4797 or Sch D direct capital gains.

[BobKamman]

What do you mean, the accountant "issued a 6252" ?  Did he start to fill one out, then figured it was all taxable, perhaps because all the gain was depreciation recapture?  Then he printed one out for the client copy, even though it didn't get sent to IRS?  What's on Line 14 of the 6252?