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Old 02-23-2015, 12:56 PM
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Installment Sale Income

I received installment sale income over the last few years as a result of a stock sale when the company I worked for was sold. The company was employee owned. I have been reporting the installment sale on Form 6252. Original selling price was $533,177 and our cost basis was $115,965, giving us a gross profit % of .7825. We received a total of $511,496 prior to 2014 and therefore reported $400,246 of gross profit in those years.

We received our final payment this past year but before receiving it, the company was sold a second time. Instead of receiving the remaining $21,681.00 from the original sale, we received $3,625. We were told the figures were adjusted as a result of the second sale of the company. When I went back and refigured my original selling price to be $515,121, my gross profit percentage would be 77.487%. I would therefore have to report a total gross profit of $399,152 over the period of the installment sale. I've already reported $400,246 in prior years. Do I therefore have a $1,094 loss to report on my 2014 tax return? How do I handle this on my return?

Thank you very much for your help.



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