Sale of Property In Trust

[pmedders]

Client's aunt set up a trust and placed property in trust. In 2001, she sold property to individuals under an installment sale (assumption by me) based on paperwork client sent me. Was faxed a "straight note" that buyer would pay $3,235.78 per month at 7% interest. Client's aunt died in 2002; thus client inherited note. Client also sent me a copy of last year's tax return and previous tax preparer shows trust info on 2nd page of schedule E and interest carried over to schedule B; however does not show a 6252 nor any capital gain. Client doesn't seem to know alot of details of exchange.

I have asked the client if aunt elected out of installment method in year of sale and reported the entire gain in year of sale. Also, if aunt did not elect out of installment method, I asked to see form 6252 from 2001.

Is there anything I am missing??

[Bees Knees]

I think that covers it. You need to know if the gain was being reported under the installment sale, since that method would need to be continued after the property was inherited. I would suggest asking for all tax returns from 2001 forward.