New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

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

Answer

You must enter 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 for the Prior year payments received field. The printed statement reports the information in the order you entered the information; to report the current-year information first, enter information in descending order. The statement dialog reports 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(s) in descending order that relate to the other information entered in the row. You will find current-year information on the first line of the printed statement.
• 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. The contract balance reported in the year of sale calculates 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 Form 6252, line 21, Payments received during the year for the year reported. This column's total reports on the input screen and Form 6252.
• Reported Income: This column reports the yearly amount of income reported on the return. Enter the installment sale income 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 presents a year-by-year status of the sale. Enter the amount of total gross profit for the installment sale. This amount is 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 reported as income.

Related topic: 1041-US: Business and capital asset sale information FAQs

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