Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Federal input screens

Screen InstPY - Prior Year Installment Sale (1065)

Show all hidden content

Overview

Use this screen to enter asset sale information for Form 6252, Installment Sale Income for prior-year installment sales. Enter prior-year installment sale information for assets with section 179 expense deduction in the SalePT Screen. Enter current-year installment sales in the Sale or 8824 Screen. If you enter current-year installment sales in the InstPY Screen, the application does not report them correctly on Form 6252, Form 4797, and Schedule D.
The application uses the dates of acquisition and sale you enter to determine short-term versus long-term transactions.
note
Electronic Filing Note:
 See General and input screen-specific topics for electronic returns for data-entry guidelines to prevent electronic filing rejections.

General Information

Description
The application uses this description in the folders block as the unit description. This field is mandatory.
Treatment
Enter a code (
1
,
2
,
3
,
S
,
L
,
M, V,
X
,
Y
, or
Z
) based on the nature of the asset. The application uses this code to determine where the information appears on Form 4797 or Schedule D. A proforma'd client automatically has the appropriate code based on the prior year's information.
note
  • Codes S, L, M, V, X, Y, and Z are not available in the InstPY Screen in the Income & Deductions folder.
  • If you choose: code V, Section 1202 – 100% exclusion; code X, Section 1202 - 50% exclusion; code Y, Section 1202 - 75% exclusion; or code Z, Section 1202 - 60% exclusion, the application does not list the transaction on Schedule D or Form 4797 but instead includes the amount on Schedule K, Other income (loss).
Qualified real property section 1245/1250 percentage
note
  • 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 section 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 payments received
     field.
  • If you enter the payment received after applying the section 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.
Apply qualified real property percentage to current year payments received
note
  • If you enter the full amount of the payment received in the
    Total current year payments received
     field, enter
    X
     in this field.
  • If you enter the payment received after applying the section 1245/1250 percentage in the
    Total current year payments received field
    ,
    clear
     the X in this field.
  • 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 section 1245/1250 percentage to all the amounts transferred from the Asset module. The application proformas these amounts to the InstPY screen when the asset is sold on the installment basis.

Gross Profit and Contract Price

Gross sales price or insurance proceeds received
Enter the total of any money, face amount of installment obligation, and the fair market value of other property received. Also include any existing mortgage or other debt the buyer assumed or is subject to. The amount you enter must include the amount of any indebtedness assumed to properly report the installment sale.

Installment Sale Income

Current year payments received
Enter the total amount of current-year payments, including 0 (zero), applied to principal. Do not include interest. Form 6252 prints if you enter an amount in this field or if the payment is a related-party transaction and Part III is required.
Prior year payments received
The application uses the information you enter in the statement to automatically produce an installment sale history at print time. The application requires complete sale information to produce an accurate report. The printed statement reports current-year information first, so enter information in descending order.
The statement dialog fields are described here.
  • Year:
     Enter the prior year(s) the payment(s) was (were) received. The application automatically reports current-year information on the first line of the printed statement. Enter payments in descending order.
  • Contract Balance:
     Enter the end-of-year contract balance for the applicable year. The printed statement reports the current-year contract balance net of the current-year principal payment.
  • Principal Received:
     Enter the principal payment received. This amount should equal the amount on Form 6252, Payments received during the year for the applicable year. The application reports this column's total in 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 year.
  • Total Income:
     Enter the amount of gross profit for the installment sale. This amount was reported on this sale's initial Form 6252, Gross profit. This amount remains constant for all years that you enter in the statement.
  • Unreported Income:
     Enter the gross profit amount that has not yet been reported as income.

Related Party Installment Sale Information

Date of second sale
If you enter a date that is more than two years after the date of sale and enter the selling price in the
Selling price of property sold by related party
 field, the application automatically marks Form 6252, The second disposition was more than two years after the first disposition (other than dispositions of marketable securities) and enters the date of disposition. If the second disposition occurred less than two years after the first disposition, additional income may be recognized on Form 6252.
Explanation if no tax avoidance purpose
Use the statement to enter an explanation if the no tax avoidance exception applies to the disposition. If there is data in this statement and no data has been entered in either of the
Date of second sale
 field or the
Special condition if applicable
 field, an X displays in the appropriate field on the form and the statement prints.

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close