1120-US: Indicating an installment obligation is received in a like-kind exchange (FAQ)

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

Question

How do I indicate an installment obligation is received in a like-kind exchange?

Answer

Include the installment obligation received in the like-kind exchange, if at least one payment on the note is to be received after the close of the tax year in which the disposal occurs, on the Disposal tab in the asset module. UltraTax CS prints a statement for Form 8824, line 22, when there is also a gain reported on this line. The statement calculates the Form 6252 gross profit and contract price based on the information outlined in IRC Section 453(f)(6) and Proposed Regulation 1.453-1(f).

UltraTax CS automatically prints Form 6252 using the gross profit and contract price reported in the Form 8824, line 22 statement.

Related topic: 1120-US: Reporting gain from like-kind exchange on the installment method FAQs

Share This