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

Answer

Include the installment obligation received in the like-kind exchange on the Disposal tab in the asset module if at least one payment on the note is to be received after the close of the tax year in which the disposition occurs. A statement prints 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).

Related topic: 1041-US: Reporting gain from like-kind exchange on the installment method FAQs

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