Selling property and receiving the sales price over a series of payments, instead of all at once at the close of the sale, is an installment sale. Unless you elect out, you will report the gain on that transaction as you receive it through the series of payments.
A sale of property in which the purchase price is paid in a fixed number of installments (together with specified interest) over a period of more than one tax year, usually evidenced by a promissory note. This treatment permits the seller to report a portion of any gain on sale as the payments are actually received.
also known as an agreement of sale or a land contract. This is a method of reporting capital gains by installments for successive tax years to minimize the impact of capital gains tax in the year of the sale.
Sales made under arrangements that provide for part or all of the selling price to be paid in a later year. If you finance the buyer's purchase of your rental property yourself instead of having the buyer get a loan or mortgage from a bank, you probably have an installment sale.
A sale which is involves the seller receiving payments over time. The Internal Revenue Code contains specific definitions and promulgates specific rules concerning installment sales and tax treatment of them. Also known as an "owner carry" sale.
A transaction in which one person sells property to another in exchange for payments that are made for a period of time; similar to a Private Annuity, except that the payments are for a fixed period instead of being measured by someone's lifetime.
An income tax method of reporting gain received from the sale of real estate when the sales price is paid in installments, i.e., where at least one payment is to be received after the close of the taxable year in which the sale occurs. No down payment is required in an installment sale. If certain conditions are met the taxpayer can save on taxes by postponing the receipt of an installment and the reporting of such income to future years when his or her other income may be lower. Thus, a taxpayer can avoid paying the entire tax on the gain in the year of sale.
In US tax law, an installment sale is a sale of an asset such a property or business 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.
A contract with a dealership to buy a vehicle on time by paying the purchase price, plus an agreed upon finance charge, over a certain period of time in installments, which are typically monthly payments.