6252-2025

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Form 6252 is used to report income from installment sales, where at least one payment is received after the tax year of the sale. The form requires details on gross profit, contract price, and payments received over the years of the installment agreement. It includes specific instructions for reporting related party transactions and special rules regarding interest and capital gains. The document outlines how to complete each part of the form, including calculations for gross profit percentage and ordinary income recapture.

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Click 'Get Form' to open IRS Form 6252 (2020) in the editor.
Begin with Part I. Enter the code for the type of property sold and describe it. Complete lines 5 through 15, detailing gross profit, contract price, and any liabilities assumed by the buyer.
Move to Part II. Calculate your gross profit percentage and enter it on line 19. Record payments received during the year on line 21, ensuring not to include interest.
If applicable, complete Part III for related party transactions. Follow instructions for lines 29 through 37 carefully, noting any ordinary income recapture.
Once all sections are filled out accurately, you can print, download, or share your completed form directly from our platform.

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Versions	Form popularity	Fillable & printable
2023	4.4 Satisfied (36 Votes)
2022	4.2 Satisfied (52 Votes)
2021	4.8 Satisfied (56 Votes)
2020	4.4 Satisfied (125 Votes)
2019	4.4 Satisfied (233 Votes)
2018	4.2 Satisfied (49 Votes)
2017	4.4 Satisfied (171 Votes)
2016	4.4 Satisfied (436 Votes)
2015	4.1 Satisfied (42 Votes)
2014	4.2 Satisfied (57 Votes)
2013	4 Satisfied (34 Votes)

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is the disadvantage of an installment sale?

If the buyer cannot make the payments on the loan, the seller may be forced to foreclose on the property or business and take legal action to recover the outstanding balance. This can be a costly and time-consuming process that can result in the seller losing money.

What is IRS form 6252?

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.

Which types of sales are reported on IRS form 6252?

Generally, you will use Form 6252 to report installment sale income from casual sales of real or personal property during the tax year. You will also have to report the installment sale income on Schedule D (Form 1040), Form 4797, or both.

Does TurboTax have form 6252?

The instructions for Form 6252 provide guidance for this option. Let a local tax expert matched to your unique situation get your taxes done 100% right with TurboTax Live Full Service. Your expert will uncover industry-specific deductions for more tax breaks and file your taxes for you.

How do I record an installment sale on my taxes?

Use Form 6252, Installment Sale Income to report an installment sale in the year the sale occurs and for each year of the installment obligation. You may need to attach Form 4797 and Schedule D (Form 1040) to your Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors.

How does an installment sale work for tax purposes?

Reporting the sale on your tax return Under the installment method, you include in income each year only the part of the gain you receive or are considered to have received. You dont include in income the part of the payment thats a return of your basis in the property.

How are you taxed on an installment sale?

After subtracting interest, you report 25% of each payment, including the down payment, as installment sale income from the sale for the tax year you receive the payment. The remainder (balance) of each payment is the tax-free return of your adjusted basis. Amount to report as installment sale income.

How do you write off an installment sale?

Purpose of IRS Form 6252 You must file Form 6252 for any year in which you received payments on the installment sale: In the year in which the sale actually occurred, fill out Lines 1 through 4 and Parts I and II. In any other year, fill out Lines 1 through 4 and Part II.