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See the Form 8997 instructions. Use Form 6252 to report income from an installment sale on the installment method. Generally, an installment sale is a disposition of property where at least one payment is received after the end of the tax year in which the disposition occurs. Installment Sale Income - IRS IRS (.gov) pub f6252accessible IRS (.gov) pub f6252accessible PDF
Sales to related parties If you sold the property in question to a related party, you must fill out Part III of Form 6252 in the year of the sale. A related party is a member of your family or a business or other entity that you have control over. What is IRS Form 6252: Installment Sale Income - TurboTax TurboTax Investments and Taxes TurboTax Investments and Taxes
Heres how to report an installment sale in TurboTax and create a Form 6252. If the asset youre selling is shown as an asset on a business schedule, such as Schedule C, Schedule E, or Schedule F, you should report the installment sale on that schedule. What is an installment sale? - TurboTax Support - Intuit intuit.com en-us help-article form-1040 intuit.com en-us help-article form-1040
Assets eligible for installment treatment. That includes payments for your inventory, for accounts receivable, and for property thats been used for one year or less.
Installment Sales to Related Party For this purpose, a related party includes your spouse/RDP, child, grandchild, parent, brother, sister, or a related corporation, S corporation, partnership, limited liability company (LLC), estate or trust. See IRC Section 453(f)(1) for more information.

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An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. If you realize a gain on an installment sale, you may be able to report part of your gain when you receive each payment. This method of reporting gain is called the installment method. Publication 537 (2023), Installment Sales - IRS IRS (.gov) publications IRS (.gov) publications
For any year after the year of sale, complete lines 1 through 4, and Part III. If you received a payment, also complete Part II. If you sold property other than marketable securities to a related party, complete Form 6252 for the year of sale and for 2 years after the year of sale even if you did not receive a payment.
Use this form to report income from an installment sale on the installment method. Generally, an installment sale is a disposition of property where at least one payment is received after the end of the tax year in which the disposition occurs.

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