A tax word used to describe a sale which is ordinarily attained with a land contract.
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 in which taxable gain is recognized over a number of years as the payment for the property sold is received.
A sale for income tax purposes in which the seller spreads the receipt of money and payment of taxes thereon over two or more tax years.
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.
A sale which, for income tax purposes. Is not taxed totally in the first year of the sale. To be valid there must be a minimum of two installment payments over two tax years.
A sale made with the agreement that the purchased goods will be paid for in fractional amounts over a specified period of time.
Sale where the purchaser pays the purchase price (or a portion thereof) to the seller in installments (usually monthly). See 'Contract (2)'.
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.
A real estate transaction in which the sales price is paid in installments.
Sale of property over more than one tax year. The purpose of an installment sale is to spread the impact of any capital gain.
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.
The sale of a property with the Vendor taking back a mortgage from the purchaser and paying the taxes on the sale proceeds as they are collected. /INSTITUTIONAL LENDER
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.
A tax term used to describe a sale which is usually accomplished by use of a land contract.
A sale in which the lessee pays the lessor several payments over a period of time. Sometimes used to finance the sale of a residual.
A sale in which the seller receives at least one payment after the tax year in which the disposition occurs. Also see “Disposal.
A tax motivated mechanism that spreads the income from the sale over several years, thereby helping to reduce capital gains tax.
The sale of an asset in exchange for a specified series of payments (the installments).
When a seller accepts a mortgage for part of the sale, the tax on the gain is paid as the mortgage principal is collected.
A client sells an asset in return for periodic payments over a fixed term, usually to spread the taxable gain.
A sale in which a seller receives payment in regular intervals, allowing the tax on the profit from the sale to be paid over time.
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.
Transaction in which the sale price is paid in installments.
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.