Installment Sales

This course covers rules surrounding installment sales and recapture of prior depreciation.
Topics Covered
* Installment sale rules
* Figuring the gross profit percentage on installment sales
* Reporting interest income from installment sales
* Buyer assumes seller's mortgage
* Installments sales of business use property
* Recapture of Section 1245 depreciation
* Recovery of Section 1250 depreciation
* Repossession of property sold under installment method
* Sale of property to related persons
* Electing out of the installment method
* How to complete Form 6252 Installment Sale Income
You can purchase the manual for this course for $0.99 at pnwtaxschool.com/oc-catalog/al...
Pacific Northwest Tax School is approved by the following organizations as a provider of continuing education:
* The IRS
* NASBA QAS (NASBA Sponsor #109290),
* Oregon Tax Board,
* The Texas State Board of Public Accountancy (Texas Sponsor #009794)
* The New York State Board for Public Accountancy (Sponsor License #002479)
You can receive 1 hour of free CE by enrolling in this course at pnwtaxschool.com/oc-catalog/al...
Terms of use
Pacific Northwest Tax School's course materials and teaching techniques are valuable proprietary information of Pacific Northwest Tax School, and all such information is subject to copyright, including written, recorded, internet based as well as all other electronic media. Each Student agrees that she/he will use the information only for purposes of education and training; and as a condition of enrollment, that they will not disseminate the information to any third party and will treat the materials as confidential information of Pacific Northwest Tax School. As a condition of enrollment, Students pledge not use any information in any competitive fashion, including to create or derive competitive materials. Students further agree that any breach of these terms and conditions shall cause the school irreparable harm, entitling Pacific Northwest Tax School to injunctive relief, as well as any other remedy that may be available at law or equity. Students shall have twelve months from date of enrollment in any continuing education course, to successfully complete the course and receive their Certificate of Completion.

[@PacificNorthwestTaxSchool]

We hope you enjoy this lecture video and find the information it contains helpful. We appreciate your feedback, but do not respond to tax questions posted by viewers.
Enrolled students have access to our Q & A forum where they can post questions and receive answers about subjects covered in this course. Enrolled students also receive a copy of the student manual, can complete course assignments and receive course answer keys, and receive CE credit.

[@SmilinsShrinking]

This lecture was super helpful!! Thank you!!!

[@erick222]

Great explanation walking thru the form-to-form workflow. But how do I report ongoing costs related to an installment sale? The buyer of this residential real estate property is to include in their payment enough to cover insurance and property taxes. However, their payment is no longer enough to cover those costs as they have escalated over the years. I receive, let's say an additional $3000 over and above the principal and interest but the insurance and taxes are now more like $5000. The sale was in an LLC so how do I report the $2000 loss? Is it on the 4797 or 1065, schedule K..perhaps line 3 or line 11?? -thanks