An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. If you dispose of property in an installment sale, you report part of your gain when you receive each installment payment. You cannot use the installment method to report a loss. General rules If a sale qualifies as an installment sale, the gain must be reported under the installment method unless: You elect out of using the installment method You are not a qualified accrual method taxpayer Related Real estate tax center Tax Tips: Real estate Forms and instructions 2023 Form 6252 (PDF) PDF About Form 6252, Installment Sale Income Publications Publication 537 (PDF)
