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Form 6252: Installment Sale Income
IRS Form 6252 is the Installment Sale Income form used to report property sales on the installment method. Taxpayers must attach a separate Form 6252 for each sale and file it for the year of disposition and every year thereafter until the final payment is received.
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IRS Form 6252 - Installment Sale Income
IRS Form 6252 is the Installment Sale Income form used to report property sales on the installment method. Taxpayers must attach a separate Form 6252 for each sale and file it for the year of disposition and every year thereafter until the final payment is received.
Risk Radar
Scan points- 1Reporting interest or original issue discount on Form 6252 instead of the proper schedule.
- 2Including interest, original issue discount, or carrying charges on Form 6252 instead of the appropriate interest schedule.
- 3Entering ordinary income from a Section 179 expense deduction on Form 6252, which the form expressly forbids.
- 4Reporting more ordinary income on line 25 than the amount shown on line 24, exceeding the allowed recapture limit.
- 5Failing to complete Part III for a related‑party installment sale for the year of sale and the following two years when final payment has not been received.
Plain English
Form 6252 tells the IRS how much money you earned each year from selling property on an installment plan. You list the sale details, the payments you got, and any ordinary income that must be reported right away. The form is attached to your regular tax return each year until the buyer finishes paying.
Submission Date
- Filing date: 2025-11-20 11:10:06
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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Glossary Terms
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What this form is for
- Use this form when reporting an installment sale under the installment method.
- Check Form 4797 instead when the income must be reported on Schedule D or Form 4797.
Form selector
Use this form or another form?
Reporting installment sale income as capital gain
Capital gains are reported on Schedule D, not directly on Form 6252
✓ Verify installment income amount
Reporting gain from business property
Business property gains require Form 4797
✓ Confirm property type and depreciation recapture
Reporting installment sale on your individual return
Schedule D aggregates all capital gains for the individual return
✓ Ensure inclusion of Form 6252 line 26
Deadline or filing window
File Form 6252 for the year of the disposition and every subsequent year, even if no payment is received, until the year the final payment is received or the obligation is disposed of. The source does not provide a separate extension period.
Checklist
What you need before filling it out
Description of property
Property description from sale agreement · Form 6252 line 1
Date acquired (mm/dd/yyyy)
Acquisition date from deed or records · Form 6252 line 2a
Date sold (mm/dd/yyyy)
Sale date from closing statement · Form 6252 line 2b
Was the property sold to a related party?
Determination of related party status per section 453(f)(1) · Form 6252 line 3
Can the total selling price be determined?
Total selling price from contract · Form 6252 line 4
Before you submit
- 1Attach Form 6252 to your tax return
- 2Enter name(s) and identifying number on the top of the form
- 3Complete the description of property in line 1
- 4Provide the acquisition date in line 2a and the sale date in line 2b
- 5Answer the related‑party question in line 3 and complete Part III if required
- 6Indicate whether the total selling price can be determined in line 4
- 7Calculate payments received in the current year (line 20) and prior years (line 23)
- 8Compute installment sale income on line 24 and transfer the result to Schedule D or Form 4797 as directed on line 26
- 9Enter any ordinary income recapture on line 25 if applicable
- 10Sign the form before filing
How to file this form
- 1Gather all sale documents and related party information
- 2Complete Form 6252 for the year of the disposition and each subsequent year until final payment
- 3Attach the completed Form 6252 to your federal tax return
- 4Mail the return to the appropriate IRS address for your filing location
- 5Retain a copy of the filed return and Form 6252 for your records
Known limitations
- 1Do not file Form 6252 for sales of stock or securities traded on an established securities market.
- 2Do not file Form 6252 if you elect to report the sale on Form 4797, Form 8949, or Schedule D instead of the installment method.
- 3Do not file Form 6252 when line 14 on the form is zero or less; report the sale on Form 4797, Form 8949, or Schedule D.
- 4Do not file Form 6252 if the calculation for line 24 results in a negative amount, indicating a loss.
- 5If the property is sold to a related party, you must also complete Part III for the year of sale and the two following years unless the final payment is received.
Field map
Compact field-by-field guide
General Info
2 items
Full legal name and taxpayer identification number (SSN or EIN).
Current mailing address.
Details
2 items
Complete all applicable sections of this form according to the official IRS instructions.
Enter the relevant dollar amount if this form involves tax calculation.
Certification
1 items
Read and acknowledge any certifications required by this form.
Signatures
1 items
Sign and date. Unsigned forms cannot be processed.
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Fillable formOpen in Editor->Form 6252 shows revision 20/25 and includes a note to go to www.irs.gov/Form6252 for the latest information. The source does not detail any changes.
What changed or needs a fresh check
- Edition date — confirm the revision reads 20/25
- Fee — Not stated in the official source
- Mailing address — Not stated in the official source
- Signature — ensure the form is signed before filing
Quick Facts
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After you file
- 1Retain all books and records related to Form 6252 as long as their contents may become material in the administration of any Internal Revenue law
- 2Keep a copy of the filed Form 6252 together with your tax return for your records
- 3If an error is discovered after filing, file an amended return that includes a corrected Form 6252
- 4Pay any interest required on installment obligations that remain outstanding at the close of a tax year
- 5Continue filing Form 6252 each year after the sale until the final payment is received or the obligation is disposed of
Sources
- SRCForm p.2 — do not file Form 6252 for sales of stock or securities traded on an established securities market.
- SRCForm p.2 — election out of installment method can be made on Form 4797, Form 8949, or Schedule D on a timely filed return or amended return within 6 months after due date.
- SRCForm p.3 — do not file Form 6252 when line 14 is zero or less; report the sale on Form 4797, Form 8949, or Schedule D.
- SRCForm p.4 — do not file Form 6252 if the amount calculated for line 24 is less than zero (sale results in loss).
- SRCForm p.1 — if property is sold to a related party, complete Part III for the year of sale and two years after unless final payment is received.
- SRCForm p.2 — interest, original issue discount, or carrying charges are not reported on Form 6252; report on the appropriate form or schedule.
- SRCForm p.2 — file Form 6252 for the year of disposition and all subsequent years until the final payment is received or the obligation is disposed of.
- SRCForm p.1 — use a separate Form 6252 for each sale or other disposition of property on the installment method.
Common confusion points
Can I use Form 6252 to report a stock sale?
I think any sale can be reported on the installment method.
→ Verify that the property is not stock or securities on an established market; if it is, use Form 4797, Form 8949, or Schedule D instead.
How do I elect out of the installment method after filing?
I’m unclear when the election can be made.
→ Ensure the election is made on a timely filed return or an amended return within 6 months after the tax due date, and include the required statement.
What should I do if line 14 on Form 6252 is zero?
I assume I still file the form.
→ Check line 14; if it is zero or negative, do not file Form 6252 and report the sale on Form 4797, Form 8949, or Schedule D.
Can I claim a loss using the installment method?
I believe I can report a loss on Form 6252.
→ Confirm line 24; if the amount is less than zero, do not use Form 6252 and report the transaction on other appropriate forms.
Do I need to fill out Part III for a related‑party sale?
I’m not sure if the extra part applies.
→ If the buyer is a related party, complete Part III for the year of sale and the next two years unless the final payment is received.
Should interest received on installment payments be entered on Form 6252?
I think all payment components belong on the form.
→ Identify any interest, original issue discount, or carrying charges and report them on the appropriate interest schedule, not on Form 6252.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 4797 – file an amended return with Form 4797 to correct ordinary income recapture entered on line 12 of Form 6252.
Questions about IRS Form 6252
What is IRS Form 6252 used for?
Form 6252 tells the IRS how much money you earned each year from selling property on an installment plan. You list the sale details, the payments you got, and any ordinary income that must be reported right away. The form is attached to your regular tax return each year until the buyer finishes paying.
Who must file IRS Form 6252?
Taxpayers who report an installment sale using the installment method must file IRS Form 6252.
What information does IRS Form 6252 require?
The form collects the property description, acquisition and sale dates, total selling price, payments received each year, gross profit, and any ordinary income recapture (lines 1‑4, Part I, Part II, and Part III when required).
How do I complete IRS Form 6252?
Attach Form 6252 to the tax return for the year of the sale. Complete lines 1‑4 with the property code, description, and dates, then fill Part I (gross profit and contract price) and Part II (payments received, installment income calculations). If the buyer is a related party, also complete Part III for the year of sale and the next two years unless the final payment is received. Do not report interest, original issue discount, or carrying charges on the form; report those on the appropriate schedules.
Can I use Form 6252 to report a stock sale?
I think any sale can be reported on the installment method. Verify that the property is not stock or securities on an established market; if it is, use Form 4797, Form 8949, or Schedule D instead.
How do I elect out of the installment method after filing?
I’m unclear when the election can be made. Ensure the election is made on a timely filed return or an amended return within 6 months after the tax due date, and include the required statement.
What should I do if line 14 on Form 6252 is zero?
I assume I still file the form. Check line 14; if it is zero or negative, do not file Form 6252 and report the sale on Form 4797, Form 8949, or Schedule D.
Can I claim a loss using the installment method?
I believe I can report a loss on Form 6252. Confirm line 24; if the amount is less than zero, do not use Form 6252 and report the transaction on other appropriate forms.
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