An installment sale is a transaction where one or more payments occur after the end of the seller’s tax year and gain may be deferred to future years.
What Is an Installment Sale & How Does It Work?
Installment sales are often used for the sale of a business and for real estate transactions. This sale structure is often chosen for the significant tax benefits to the seller and the unencumbered cash flow afforded to the buyer. How Does an Installment Sale Work? Without the installment sale rules, a gain or loss would…