How do I report installment sales?

[taxu2]

Client is selling farm equipment in installments. Was wondering how I report this. And what do I put under dispositions in assets? Any help would be greatly appreciated. Thank you! 

[IRonMaN · Accepted solution]

Yes, use the dispositions section and click on the 6252 box.  However, depending on how much depreciation was taken, the whole gain may end up stuck in 2017 because of depreciation recapture.

[Just-Lisa-Now-]

Just in case you cant find the disposition area...scroll down several screen lengths in the asset entry worksheet of the equipt that was sold.

[taxu2]

Thanks a bunch!

[IRonMaN]

You betcha!

[taxu2]

Turns out they are taking a loss, so they can't take the installment sale option.  So, even though they are accepting payment over 5 years, would I just include the total sales price this year and none the reminder of the 4 years?

[IRonMaN]

Yes.  But remember to pick up the interest each year.

[taxu2]

Okay, thanks!

[IRonMaN]

:+1: