Contract Price


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Contract Price

In common law, the amount of money one receives in exchange for providing a good or service outlined in a contract. The contract price must be stated in the contract. For example, if two parties make a contract to sell a house for $100,000, the contract price is $100,000.

contract price

A tax term used in the calculation of gain realized on an installment sale. It is the selling price, minus any mortgage debt assumed by the buyer, plus the excess of any such liens collected in addition to the seller's equity in the property.

Contract Price

With respect to an installment sale, one of the amounts used to compute the percentage of each principal payment that is taxable as gain. The contract is equal to the gross selling price when no mortgages are assumed. If a mortgage is assumed, the contract price is the gross selling price minus the amount of the mortgage plus the excess (if any) of the mortgage over the seller's basis and expenses of sale.
References in periodicals archive ?
The first step is to hypothetically reapply the PCM to all long-term contracts completed or adjusted in the current year using actual (rather than estimated) total contract price and contract costs (Regs.
This facility has a contract price of $330,000 and twenty-three employees formerly worked there.
Security for performance of the contract 5% of the contract price, incl.
That gave the Oman contract price a narrower margin with paper Brent and an added premium over July WTI, as the sour crude was seen by Asian buyers as a good value.
However, a Melbourne-based analyst points out that, as quarterly prices are generally calculated on the previous quarter's average index price, the new contract price could be "where the market was, rather than where it currently is.
Taxpayers include in income a portion of the total contract price based on costs incurred and allocable to the long-term contract.
The Fukuoka District Court ordered five major Japanese machinery makers Tuesday to repay 2,088 million yen, or 7 percent of the contract price, to the city government of Fukuoka for rigging bids for a city incinerator construction project.
The contract price is reset each year in October based on the previous twelve-month changes in the basket of indices.
company - one to purchase products from Japan at a contract price of 1,000 yen, and a second to purchase products at a contract price of $9.
The client felt it was part of the overall contract price and was done to try and land the job.
If the Applegates did not make their demand within one year, the going price as of the end of the year would be the contract price.
At that point, the contractor includes the contract price in its gross income and deducts the related costs incurred in completing the contract.

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