Get Irs 6252 2022-2025

This guide provides a clear and user-friendly approach to filling out Form 6252, which is used to report income from an installment sale. Understanding each section of the form will help users accurately report their installment sale income and comply with IRS regulations.

Follow the steps to complete the IRS 6252 online

1. Click ‘Get Form’ button to obtain the form and open it in the editor.
2. Enter the name(s) shown on the return at the top of the form. This section will help identify the taxpayer completing the form.
3. In Part I, indicate the type of property sold by entering a code and description on line 1. Choose from the appropriate codes that match the nature of the sale.
4. Complete line 5 by entering the total amount of money, face value of the installment obligation, and the fair market value of other property or services received or to be received in exchange for the property.
5. On line 6, detail any mortgages, debts, or liabilities the buyer assumed or took the property subject to. Do not include new mortgages acquired by the buyer.
6. For line 7, report the cost or other basis of the property sold, including adjustments for improvements or casualty losses.
7. On line 8, provide the total depreciation that was allowed or allowable up to the date of sale.
8. Subtract line 9 from line 8 to find the adjusted basis of the property, which you will enter on line 9.
9. For line 10, record any commissions and other selling expenses incurred during the sale.
10. Line 11 requires entering any ordinary income recapture based on prior depreciation or amortization deductions.
11. Check line 14 to ensure it is not zero or less; if it is, do not proceed with the remainder of the form.
12. Proceed to Part II, where you will detail the installment sale income on lines 19 through 25. This includes calculating the gross profit percentage.
13. If applicable, complete Part III for related-party installment sales, as these require additional information based on specific rules outlined in the instructions.
14. Once you have filled out all relevant sections, review your entries for accuracy and completeness.
15. Finally, save your changes, and you can choose to download, print, or share the filled form as needed.

Get started on completing your IRS 6252 form online today to ensure timely and accurate submission!