Installment sale

Forum|Forum|5 years ago
August 20, 2020
1 reply
21 views

I believe you can set up an installment plan for the Sale of a closely held S-corp. Client sold their S-corp via installment sale, the note was transferred to each shareholder individually. The K-1 arrived with the entire gain from the sale in box 8 of the K-1. Client is receiving proceeds over the next 5 years. I was hoping to fill out the form 6252 for this gain. Does anyone know how to create an installment sale on the individual return using the K-1 information. Do I need to contact the accountant that did the K-1 for additional information?

This topic has been closed for replies.

sjrcpa

Level 15

Based on the K-1 presentation you described, the S Corp may have elected out of the installment sale treatment.

I would contact the accountant who prepared the S Corp return.

The more I know the more I don’t know.

J

jlew1229Author

Level 5

Would the accountant that prepared the K-1 have had to make that specific election, It sounds like the K-1 should have been completed differently to be able to establish the installment sale for my client. Is that correct?

abctax55

Level 15

Any election would have to be done at the entity level.

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