Installment Sale Income - Profit and Payments Received

Installment Sale Income

Enter the gross profit percentage determined for the year of sale even if you did not file Form 6252 for that year.

Enter all money and the FMV (Fair Market Value) of any property you received during the tax year. Include as payments any amount withheld to pay off a mortgage or other debt or to pay broker and legal fees. Do not include the buyers note or any mortgage or other liability assumed by the buyer. However, a note or other debt that is payable on demand or readily tradable in an established securities market is considered a payment. For sales occuring before October 22, 2004, a note or other debt is considered a payment only if it was issued by a corporation or governmental entity. If you did not receive any payments during the tax year, enter zero.

See Pledge rule in our Knowledge Base for details about proceeds of debt secured by installment obligations that must be treated as payments on installment obligations.

Enter all money and the FMV of property you received before the current tax year from the sale. Include allocable installment income and any other deemed payments from prior years.