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Level 3
February 20, 2025
Question

How would I report an note receivable income for the installment sale of stock back to a privately held business?

  • February 20, 2025
  • 1 reply
  • 8 views

Here are the facts:

Stock bonus plan payout to employee and employee turns around and immediately sells the stock back to the company in exchange for a note receivable.

How would the income from the note receivable be reported each year (e.g. ordinary income, return of basis, capital gain, etc.)?

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1 reply

sjrcpa
Level 15
February 20, 2025

Form 6252 Installment sale.

Interest payments go on Schedule B.

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