Quote Originally Posted by jcwcpa View Post
Is it allowed on a 6252 for 8 years?
It would be allowed for the duration of collection of money. 5 years, 15 years, 25 years, whatever. Treatment does not stop until final dollar is collected. Also stops with an early payoff.

Since the sale is for stock only (and not selling the business), there are no complicating factors such as goodwill, asset recapture, etc. So long as the S Corp continues to be in business and operate.