Can you sell assets belonging to a partnership using an installment sale method similar to an individual selling property? Can the IRS Form 6252 be used the same way on a partnership as it would be used on an individual return? If so, how it reported on the IRS Form 1065 and to the K-1s?
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Installment sales are allowed...
Yes, a partnership can sell assets on an installment sale basis.
Form 6252 is used (my software uses the same process/data entry as for an individual)
The resulting income from the principal collections will flow to the appropriate line of the Form 1065, Sch K & K-1 - depending on the nature of the income/gain. -
Type of asset
I believe 1245 assets do not get installment treatment for depreciation taken it is recaptured on the date of sale not when cash is received. Inventory also is ordinary income - capital gains (goodwill, etc) 6252 works.Comment
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Correct....
Therefore one needs to make sure that the downpayment is large enough to cover the immediate tax hit if such assets are part of the sale. The OP hasn't provided specifics as to the assets sold.Originally posted by JON View PostComment
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