Form 6252 Installment Sale Income

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Version A, Cycle 2

Form

6252

Department of the Treasury
Internal Revenue Service
Name(s) shown on return

1
2a
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Part I
5
6

Installment Sale Income

OMB No. 1545-0228

2009

Attach to your tax return.
Use a separate form for each sale or other disposition of
property on the installment method.
©

©

Attachment
Sequence No. 79
Identifying number

f
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s
a
9
t
0
f
0
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/
D /02
7
0

Description of property ©
b Date sold (month, day, year) © mm/dd/yyyy
Date acquired (month, day, year) © mm/dd/yyyy
Was the property sold to a related party (see instructions) after May 14, 1980? If “No,” skip line 4 . . . .
Yes
Was the property you sold to a related party a marketable security? If “Yes,” complete Part III. If “No,”
complete Part III for the year of sale and the 2 years after the year of sale . . . . . . . . . . . .
Yes

Gross Profit and Contract Price. Complete this part for the year of sale only.

Selling price including mortgages and other debts. Do not include interest whether stated or unstated
Mortgages, debts, and other liabilities the buyer assumed or took the
property subject to (see instructions) . . . . . . . . . . .
6
7
Subtract line 6 from line 5. . . . . . . . . . . . . . .
8
Cost or other basis of property sold . . . . . . . . . . .
9
Depreciation allowed or allowable . . . . . . . . . . . .
10
Adjusted basis. Subtract line 9 from line 8 . . . . . . . . .
11
Commissions and other expenses of sale . . . . . . . . .
12
Income recapture from Form 4797, Part III (see instructions) . . .
Add lines 10, 11, and 12 . . . . . . . . . . . . . . . . . . . . . . . . .
Subtract line 13 from line 5. If zero or less, do not complete the rest of this form (see instructions)
If the property described on line 1 above was your main home, enter the amount of your excluded
gain (see instructions). Otherwise, enter -0- . . . . . . . . . . . . . . . . . . .

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9
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No
No

5

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Gross profit. Subtract line 15 from line 14 . . . .
Subtract line 13 from line 6. If zero or less, enter -0- .
Contract price. Add line 7 and line 17 . . . . .

19

Gross profit percentage (expressed as a decimal amount). Divide line 16 by line 18. For years after
the year of sale, see instructions . . . . . . . . . . . . . . . . . . . . . .

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25
26

If this is the year of sale, enter the amount from line 17. Otherwise, enter -0- . . . . . . . .
Payments received during year (see instructions). Do not include interest, whether stated or unstated
Add lines 20 and 21 . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments received in prior years (see instructions). Do not include
interest, whether stated or unstated . . . . . . . . . . .
23
Installment sale income. Multiply line 22 by line 19 . . . . . . . . . . . . . . . .
Enter the part of line 24 that is ordinary income under the recapture rules (see instructions) . . .
Subtract line 25 from line 24. Enter here and on Schedule D or Form 4797 (see instructions) . . .

27

Name, address, and taxpayer identifying number of related party

28
29

Did the related party resell or dispose of the property (“second disposition”) during this tax year? . . . . .
Yes
No
If the answer to question 28 is “Yes,” complete lines 30 through 37 below unless one of the following conditions is met. Check the box that applies.

Part II

Part III

a
b
c
d
e
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Installment Sale Income. Complete this part for the year of sale and any year you receive a payment or have
certain debts you must treat as a payment on installment obligations.
19
20
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22

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Related Party Installment Sale Income. Do not complete if you received the final payment this tax year.

The second disposition was more than 2 years after the first disposition (other than dispositions of
marketable securities). If this box is checked, enter the date of disposition (month, day, year) . . . . ©

mm/dd/yyyy
The first disposition was a sale or exchange of stock to the issuing corporation.
The second disposition was an involuntary conversion and the threat of conversion occurred after the first disposition.
The second disposition occurred after the death of the original seller or buyer.
It can be established to the satisfaction of the Internal Revenue Service that tax avoidance was not a principal purpose for
either of the dispositions. If this box is checked, attach an explanation (see instructions).
Selling price of property sold by related party (see instructions) . . . . . . . . . .
Enter contract price from line 18 for year of first sale . . . . . . . . . . . . . .
Enter the smaller of line 30 or line 31 . . . . . . . . . . . . . . . . . . .
Total payments received by the end of your 2009 tax year (see instructions) . . . . . .
Subtract line 33 from line 32. If zero or less, enter -0- . . . . . . . . . . . . .
Multiply line 34 by the gross profit percentage on line 19 for year of first sale . . . . . .
Enter the part of line 35 that is ordinary income under the recapture rules (see instructions) .
Subtract line 36 from line 35. Enter here and on Schedule D or Form 4797 (see instructions) .

For Paperwork Reduction Act Notice, see page 4.

Cat. No. 13601R

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Form 6252 (2009)