Trnr395 Posted March 16, 2010 Report Posted March 16, 2010 client sold his corporation to his son for $75,000 which will be paid monthly for a period of 10 years, including interest. Would this sale be reported on form 6252. I have done it this way and everything seems to come out right as far as a reportable gain for 2009. Just wanted to make sure I was doing this correctly. Quote
jainen Posted March 16, 2010 Report Posted March 16, 2010 >>Would this sale be reported on form 6252.<< Generally the sale of a business is treated as the sale of individual assets. If that applies to your situation, you can not use the installment method for the part of sales price allocated to inventory, depreciable assets sold to a relative, ordinary income from recapture, or assets valued below basis. Quote
grandmabee Posted March 17, 2010 Report Posted March 17, 2010 >>Would this sale be reported on form 6252.<< Generally the sale of a business is treated as the sale of individual assets. If that applies to your situation, you can not use the installment method for the part of sales price allocated to inventory, depreciable assets sold to a relative, ordinary income from recapture, or assets valued below basis. But if he sold his stock ( this is just IF ) then he could do 6252 right? Quote
jklcpa Posted March 17, 2010 Report Posted March 17, 2010 But if he sold his stock ( this is just IF ) then he could do 6252 right? Yes Quote
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