by 
Anonymous
ANSWERS: 1
-
sSeller financing creates an installment salewhich is a disposition of property where at least one payment of the purchase price will be received after the close of the year in which the disposition occurs. Under the installment method of reporting gain, a taxpayer who receives payments from a qualified installment sale will be allowed to recognize a percentage of the taxpayer's gain as each payment is received, rather than being required to recognize the entire taxable gain in the year of the sale. Because the taxpayer recognizes the gain over the taxable years in which the payments are actually received, the taxpayer is able to defer payment of income taxes that are assessed on that gain.
RELATED QUESTIONS
Copyright 2023, Wired Ivy, LLC