Independent form guide. BrieflyGo is not affiliated with or endorsed by IRS, USCIS, SSA, DOL, or any U.S. government agency. Official forms are sourced from public government websites.
Official form guide
Form 6252: Installment Sale Income
IRS Form 6252 is used to report Installment Sale Income for taxpayers. This form must be used for each sale or other disposition of property on the installment method and has an OMB No. of 1545-0228.
Need help with Form 6252?
Open it in the AI Editor for field guidance, checks, and PDF export.
Need help? AI Editor guides you through every field of Form 6252.
Start filling →Form Overview
IRS Form 6252 - Installment Sale Income
IRS Form 6252 is used to report Installment Sale Income for taxpayers. This form must be used for each sale or other disposition of property on the installment method and has an OMB No. of 1545-0228.
Risk Radar
Scan points- 1Do not omit filling out Form 6252 for a year even if no payment was received during that tax year.
- 2Failing to complete Part III when the property was sold to a related party.
- 3Not reporting income from interest received on Form 6252 (it belongs elsewhere).
- 4Omitting filing for any year of the agreement, even if no payment was received that year.
- 5Entering ordinary income recapture directly on Line 31 or 32 of Form 4797 instead of correctly allocating it to Form 6252.
Plain English
This form helps report income earned from selling property over time instead of all at once. Taxpayers use Form 6252 to show how much profit is recognized each year based on payments received. It must be filed for the year the sale happened and every year after until the final payment comes in.
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.
AI co-pilot
Fill it faster. Catch mistakes before you file.
What this form is for
- Use this form when reporting an installment sale under the installment method.
- Do not use it when a payment is received in the tax year but the disposition was not a sale or other disposition of property on the installment method.
- Check Form 4797 instead when entering the part of the installment sale income that is ordinary income under recapture rules.
Form selector
Use this form or another form?
Sale to related party where second disposition occurs
Required for the year of sale and 2 years after, unless final payment was received this year.
✓ Check instructions on Form 6252.
Nontax avoidance exception applies to second disposition
Applies if disposition was involuntary or terms were substantially equal/longer than the first sale.
✓ Review Part III rules.
Sale before October 22, 2004 (to related party)
A note is considered a payment only if issued by a corporation or governmental entity.
✓ Verify date of original sale.
Deadline or filing window
The trigger event is the disposition of the property; filing starts in the year of disposition. The form must continue to be filed each subsequent year until the final payment is received or the obligation is disposed of, regardless of payments made. There is no specific extension date mentioned for the initial filing, but amended returns have a 6-month window.
Checklist
What you need before filling it out
Part I (Gross Profit and Contract Price)
Total of lines 20, 21, and 23 · Page 1
Line 24 (Installment sale income)
Result of multiplying Line 22 by Line 19 · Page 1
Part III Related Party Income
Completed if property sold to a related party and final payment was NOT received this year · Page 1 & 2
Line 23 (Prior years payments)
All money/FMV of property/services received before this tax year, including deemed payments from prior years · Page 4
Nontax Avoidance Exception
Involuntary disposition or substantially equal/longer payment terms for the second sale · Page 2 (General Instructions)
Before you submit
- 1Complete Part I for every year of the installment agreement.
- 2Ensure Line 19 correctly reflects the Gross Profit and Contract Price.
- 3Verify that Lines 20 (current year payments) and 23 (prior years payments) exclude all interest amounts.
- 4Confirm Line 24 is calculated as Line 22 multiplied by Line 19, and it is $ge$ $0$.
- 5If applicable, complete Part III for the year of sale and two subsequent years (unless final payment was received this year).
- 6Enter zero on Line 21 if no payments were received during the current tax year.
- 7Check that any amounts entered on Line 34 from prior years are correctly transferred to Line 23.
How to file this form
- 1Complete Part I for all years of the installment agreement, ensuring Lines 19 through 26 are filled out.
- 2If applicable, complete Part III (Related Party Installment Sale Income) based on whether the property was sold to a related party and if final payment was received this year.
- 3Enter zero on Line 21 if no payments were received during the current tax year.
- 4Determine if you need to report income under recapture rules by filling out Line 25 (Ordinary Income portion).
- 5Calculate the net installment sale income for the year on Line 26, and enter this amount onto Schedule D or Form 4797.
- 6Sign and date Form 6252 before sending it to the Internal Revenue Service.
Known limitations
- 1Do not file Form 6252 to report sales during the tax year of stock or securities traded on an established securities market; instead, treat all payments as received during that year.
- 2Do not file Form 6252 if you elect not to report the sale on the installment method; in this case, report the selling price on Form 4797, Form 8949, or Schedule D (Form 1040).
- 3Do not file Form 6252 if line 14 is zero or less, because the entire sale should be reported on Form 4797, Form 8949, or the Schedule D for the tax return.
- 4The installment method cannot be claimed under section 453 and Rev. Rul. 70-430 if the amount calculated for line 24 is less than zero.
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.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is 20/25, and taxpayers should visit www.irs.gov/Form6252 for the latest information regarding developments related to Form 6252.
What changed or needs a fresh check
- Edition date — confirm the revision reads 20/25.
- OMB Number — confirm it reads 1545-0228.
- Filer identification — ensure Name(s) and Identifying number are correctly listed on Page 1.
- Sale type confirmation — check boxes for 'Yes' or 'No' next to the question: 'Was the property sold to a related party?'
- Final payment timing — confirm if you received the final payment during the tax year when completing Part III.
Quick Facts
Downloads
After you file
- 1Keep a copy of Form 6252 filed.
- 2File Form 6252 for the year of disposition and all subsequent years, even if no payment was received in that year, until the final payment is received or the obligation is disposed of.
- 3If you amend your return after filing on time without making an election to use the installment method, file the amended return no later than 6 months after the due date (excluding extensions) and enter “Filed pursuant to section 301.9100-2” at the top.
- 4When reporting income, remember that interest received, carrying charges received, original issue discount, or unstated interest should be reported on the appropriate form or schedule for the year it is includible in income (see Pub. 537).
Sources
- SRCForm p.1 — The official title is Installment Sale Income.
- SRCInstructions p.1 — Use a separate form for each sale or other disposition of property on the installment method.
- SRCInstructions p.2 — File Form 6252 for the year of the disposition and all subsequent years, regardless of whether a payment is received in such year, until and including the year final payment is received or the obligation is disposed of.
- SRCInstructions p.2 — For all years of the installment agreement, complete lines 1 through 4, Part I, and Part II.
- SRCInstructions p.3 — Line 12 requires entering any ordinary income recapture under section 1245 or 1250 (including sections 179 and 291) that is fully taxable in the year of sale.
- SRCInstructions p.4 — Deemed payments are listed as amounts deemed received due to a second disposition by a related party, the pledge rule of section 453A(d), or liabilities assumed by the buyer in excess of the seller’s basis (Line 20).
- SRCInstructions p.3 — Line 14 requires that if it is zero or less, do not file Form 6252 and report the entire sale on Form 4797, Form 8949, or the Schedule D.
- SRCInstructions p.2 — If the property was sold to a related party, complete Part III for the year of sale and 2 years after the year of sale unless you received the final payment during the tax year.
Common confusion points
What years must I file Form 6252 for?
File for the year of disposition and all subsequent years, regardless of whether a payment was received that year, until the final payment is received or the obligation is disposed of.
→ Check Part II requirements to ensure you complete lines 1 through 4 for every year.
Do I need to file Form 6252 if I sell stock on an established market?
Yes, but treat all payments as received during the year of sale instead of tracking them by installment.
→ Verify that your property is not stock or securities traded on an established market before skipping this form.
If the property was sold to a related party, what extra parts do I need to complete?
Complete Part III for the year of sale and two years after the year of the sale unless you received the final payment during that tax year.
→ Check line 3 on Form 6252; if 'Yes' is checked, ensure Part III is completed according to the timing rules.
When do I report ordinary income recapture?
Line 12 reports any ordinary income recapture under sections 1245 or 1250 (including 179 and 291) that is fully taxable in the year of sale, even if no payments were received.
→ For property with capital gain, check line 31 of Form 4797 to find the amount for Line 12 on Form 6252.
What happens if I have a capital gain and use the QOF election?
You can defer part or all of the gain until you sell/exchange the investment, experience an inclusion event, or December 31, 2026 (whichever is earlier), or permanently exclude it if held for at least 10 years.
→ Review Part III instructions to confirm which types of gains qualify for these special rules.
What do 'deemed payments' include?
Deemed payments are amounts considered received due to a second disposition by a related party, the pledge rule of section 453A(d), or liabilities assumed by the buyer beyond the seller’s basis.
→ Confirm this amount is entered on line 20 from the year of sale.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Schedule D (Form 1040) (Use this if you elect not to use the installment method or for certain sales)
Questions about IRS Form 6252
What is IRS Form 6252 used for?
This form helps report income earned from selling property over time instead of all at once. Taxpayers use Form 6252 to show how much profit is recognized each year based on payments received. It must be filed for the year the sale happened and every year after until the final payment comes in.
Who must file IRS Form 6252?
Taxpayers who engage in an installment sale of property must file IRS Form 6252. This applies to all years of the installment agreement, even if no payment was received that specific tax year.
What information does IRS Form 6252 require?
The form collects details about the property sold (Part I), payments received during and prior to the current year (Part II), and information regarding related party sales in Part III. Line 24 calculates the total installment sale income for the reporting period.
When is IRS Form 6252 due?
Form 6252 must be filed for the year of the disposition and all subsequent years until the final payment is received or the obligation is disposed of. If filing an amended return, it must be done no later than 6 months after the due date of the tax return (excluding extensions).
Where do I file IRS Form 6252?
The form should be attached to your primary tax return. For the latest information, taxpayers can visit www.irs.gov/Form6252.
How do I complete IRS Form 6252?
First, complete lines 1 through 4 in Part I. Next, fill out the payment details in Part II (lines 20-26). If applicable, complete Part III for related party sales. The form must be used separately for each sale or disposition of property.
What happens if IRS Form 6252 is filed incorrectly?
Failing to file Form 6252 for a year of sale or disposition means income may not be properly reported on the installment method, which affects taxable income calculations.
What years must I file Form 6252 for?
File for the year of disposition and all subsequent years, regardless of whether a payment was received that year, until the final payment is received or the obligation is disposed of. Check Part II requirements to ensure you complete lines 1 through 4 for every year.
Source transparency
Copyright & Licensing - US Government Forms
BrieflyGo links to and explains official public form sources. We are not a government agency, and this page is for general form guidance, not legal advice.
Understand the agreement before you sign it.
Review risky clauses in plain English, fix the document, and keep it moving toward signature.