1040-US: Data entry for Prior year payments received field in Screen InstPY

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Question

How do I enter information in the Prior year payments received field located in Screen InstPY?

Answer

UltraTax CS requires complete sale information to produce an accurate report. Prior-year sales may not have complete sale information on the input screen. If you want to have a complete history of the installment sale, enter the information in the statement dialog attached to the Prior year payments received field. The printed statement reports the information in the order it was entered, so to report the current-year information first, enter information in descending order.

The statement dialog is designed to report the status of an installment sale on the last day of the current year. Information entered should be net of the applicable year's activity. Below is a description of the columns provided and a description of the type of information that you should enter in each field.

Year: This column identifies what year the payment and reported income occurred. Enter the year that relates to the other information entered in the row. UltraTax CS reports current-year information on the first line of the printed statement so it is important to enter information in descending order.

Contract Balance End of Year: This column reports the contract balance as of the end of the year. Any amount entered here should be the net of any payments received during the year. The current-year contract balance is reported net of any current-year payment received. UltraTax CS calculates the contract balance reported in the year of sale as contract price (Form 6252 line 18) less the payments received (Form 6252 line 22).

Principal Payments: Enter the principal payment received during the reporting year. Enter only the principal amount received. Do not include interest payments. This amount should equal the Form 6252, line 21, Payments received during the year for the year reported. This column's total is reported on the input screen and the Form 6252.

Reported Income: This column reports the yearly amount of income reported on the return. Enter the installment sale income that was reported on Form 6252, line 24 for the year.

Total Income: The amount in this column should remain constant over the life of the sale. The report is designed to present a year-by-year status of the sale. Enter the amount of total gross profit for the installment sale. This amount can be found on the sale's initial Form 6252, line 16, gross profit.

Unreported Income: This column reports the amount of unreported income as of the end of the year. Enter the amount of gross profit that has not yet been reported as income.

Related topic: Business and capital asset sale information FAQs (1040)

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