What Are the Rules for Installment Sales to Related Parties?

Installment Sales to Related Party A special rule applies to a first disposition (sale or exchange) of property under the installment method to a related party who then makes a second disposition (sale, exchange, gift, or cancellation of installment note) before making all payments on the first disposition. For this purpose, a related party includes your spouse, child, grandchild, parent, [...]

Form 6252 - Installment Sale Income

Installment sale reporting. In 2019 and later, if you have an outstanding installment sale balance after the initial year, complete lines 1 through 4, Part I, and Part II for each year of the installment agreement. If you sold property to a related party during the year, also complete Part III. Purpose of Form Use Form 6252 to report income from an installment sale on the installment [...]

Original Investment Date Recapture of Investment Credit

Purpose of Form Use Form 4255 to figure the increase in tax for the recapture of investment credit claimed and for the recapture of a qualifying therapeutic discovery project grant. Credit Recapture Requirements and Special Rules Generally, you must refigure the investment credit and may have to recapture all or part of it if any of the following apply. -You disposed of investment credit [...]

Form 4255 - Basis Adjustment for Recapture of Investment Credit Tax

Basis Adjustment on Recapture For property subject to investment credit recapture, increase the property basis as follows: For qualified rehabilitation expenditures, increase the basis by 100% of the recapture tax (or adjustment to carry-backs and carry-overs). For energy property or qualified timber property, increase the basis by 50% of the recapture tax (or adjustment to carry-backs and [...]

Form 4255 - Recapture of Investment Credit

Use Form 4255 to figure the increase in tax for the recapture of investment credit claimed. Who Must Refigure the Investment CreditGenerally, you must refigure the investment credit and may have to recapture all or part of it if any of the following apply: You disposed of investment credit property before the end of 5 full years after the property was placed in service (recapture period). [...]