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Federal input screens

Screen InstPY - Prior Year Installment Sale (1120)

Overview

Do not enter information for a prior-year installment sale of section 179 property for an S Corporation. Enter those prior-year installment sales in the SalePT screen.

General Information

In the year of sale, the Asset module transfers the information related to a qualified real property asset sold at a gain, to two separate Sale screens. The application applies the 1245/1250 percentage to all the amounts transferred from the Asset module. If you enter the full amount of the payment received in the
Total current year payments received
 field, enter
X
 in the
Apply qualified real property percentage to current year payment received
 field. If you enter the payment received after applying the 1245/1250 percentage in the
Total current year payments received
 field, clear the
X
 in the
Apply qualified real property percentage to current year payments received
 field. See Dispositions of qualified real property FAQs and Notice 2013-59, 2013-40 IRB 297 – IRC Sec(s). 179 for additional information on the disposition of qualified real property.
This field is for information purposes only. This field is marked on proforma when a prior-year like-kind exchange included an installment obligation. Enter the current year payments received for the obligation in the
Total current year payments received
 field.
Enter the state postal code. Certain state applications use the sale information in their calculations.
Enter
X
 if either PA or WI is entered in the
State postal code
 field and the disposal does not qualify for installment treatment.

Prior Year Gross Profit and Contract Price Information

The amount you enter must include the amount of any indebtedness assumed to report the installment sale properly.
Enter all depreciation amount deducted or allowed to deduct, including the amount of section 179 expense deduction for a C Corporation.

Installment Sale Income

The fields within the statement dialog are described as follows:
  • Year:
     Enter the prior year(s) the payment(s) was (were) received. Current-year information is automatically reported on the first line of the printed statement. Enter prior year payments in descending order.
  • Contract Balance End of Year:
     Enter the contract balance as of the first day of the current taxable year. The contract balance is reported net of the current-year principal payment.
  • Principal Received:
     Enter the principal payment received in prior year (s). This amount should equal Form 6252, Payments received during the year for the applicable year. UltraTax CS/1120 reports this column's total on the face of this screen and on Form 6252.
  • Reported Income:
     Enter the installment sale income that was reported on Form 6252, Installment sale income for the appropriate prior year.
  • Total Income:
     Enter the amount of gross profit for the installment sale. Enter the gross profit reported on this sale's initial Form 6252, Gross profit. This amount remains constant for all years entered in the statement dialog.
  • Unreported Income:
     Enter the gross profit amount that has not yet been reported as income.
Enter the amount of ordinary income to recapture for only section 1252, 1254, or 1255 property. Do not enter ordinary income from a section 179 expense deduction in this field. Also, do not enter ordinary income from a section 1245 or 1250 property.

Related Party Installment Sale Information

Complete the related-party information in the same order as the sales.
If you enter a date that is more than two years after the date of sale, the second disposition was more than 2 years checkbox on Form 6252 automatically marks and enters the date of the second disposition. If the second disposition occurred less than two years before the first disposition, additional income may be recognized on Form 6252.
Enter an amount only when the related party resells the property in a year subsequent to the original installment sale.
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