Question

Sale of Business on Installment

Forum|Forum|5 years ago
May 17, 2021
1 reply
0 views

We sold a business (C Corp) with a Stock Purchase Agreement. Buyer has a loan and will pay in installments. I entered the sale as an installment. Turbo Tax generated a Form 4797 (Sale of Business Property) and Form 6252 (Installment Sale Income). The amounts look right, but on the income summary page it lists $0 under Installment Sales and the entire amount under Sale of Business Property. Why isn't it showing up as installment income?

Thanks!

TurboTax Premier Online

N

nmp222

The sale of stock is generally not allowed installment sale treatment. It sounds like your selling Section 1244 stock however I would check to see if your stock qualifies as Section 1202 stock. You can look up the rules for Section 1202 stock on the internet. The sale of Section 1202 stock takes place on a schedule D.

D

DianeRanAuthor

Thank you. I researched these suggestions and neither Section 1202 stock (only shares acquired after 2010) or Section 1244 stock (sold for a loss) applies to this situation. These aren't publicly traded securities, just a method to sell a business. TurboTax is acknowledging it as an installment sale. It has generating Form 6252 with the numbers. I'm just trying to determine why it isn't showing up as that income category on the summary.

Thanks.