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CCH Axcess Tax

Installment Sales

Introduction to Installment Sales

The Installment Sales worksheet is used to compute and print a Form 6252 for each sale. The taxable gain carries to Schedule D, Capital Gains and Losses, or to Form 4797, Sales of Business Property. A schedule of installment sale receipts prints for each sale.

Asset costs and accumulated depreciation carry from the depreciation worksheets to Form 6252 when the sale number is used.

Alternative Minimum Tax

If this is a current year installment sale using the "Automatic Sale" feature, enter any AMT amounts in the related depreciation fields. When there are differences between the AMT and regular tax amounts on the sale, an AMT version of Form 6252/Schedule of Receipts is produced. If this was a prior year sale or if the "Automatic Sale" feature is not used, enter the AMT amounts if different than the regular tax amounts in the AMT amount fields. If there are differences affecting the Schedule of Receipts, use the AMT code field to indicate that the entry is only for regular tax ("1") or only for AMT tax ("2"). When the code is blank, we assume there is no difference.

Current Year Sales without Automatic Sale Feature

If you do not use the "Automatic Sale" feature with the "Sale Number" field, you must make the following entries to compute the gross profit percentage and the current year taxable amount:

• Date acquired
• Date sold
• Property type
• Total selling price
• Adjusted basis
• Current year receipts

You can make these required entries in detail or summary.

Current Year Sales with Automatic Sale Feature

Use the "Automatic Sale" feature to link information entered on the depreciation worksheets to sales information entered on the Installment Sales worksheet. This is done through the use of a sale number entered in both places for the property. When you enter a sale number, the gain in the year of sale is calculated from the following depreciation amounts based on your entries on the depreciation worksheets:

• Total depreciation
• Depreciation not subject to recapture (1245)
• Depreciation subject to recapture (1245)
• Excess depreciation 1/1/70 to 12/31/75 (1250)
• Excess depreciation after 12/31/75 (1250)
• Section 179 expense (1245)

Prior Year Sales

For a prior year sale, you must enter the current year payments received. You can override all calculations of the gain from receipts by entering amounts on the "Schedule of Receipts / Collections" section.

Contract Price

If the contract price override is

• not used - any excess mortgage over basis increases the contract price in the year of sale.
• used - then the excess mortgage over basis does not increase the basis.

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