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

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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

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