Form 6252 - Installment Sale Income

Form 6252, Installment Sale Income, is used for individual tax returns to report income from the sale of real or personal property that is coming from an installment sale and is being reported using the installment method. An installment sale occurs when at least one payment from the disposition of property is received after the end of the tax year. The form is not required if the sale of the property does not result in a gain for the taxpayer, and it is not needed to report sales of stock or securities traded on an established securities market. The form is used to figure out how much of the money received during a given tax year was a return of capital, how much was a gain, and how much was interest. It must be filed for any year in which a payment is received on the installment sale, and it may need to be filed every year until the property is fully paid for.