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installment contract |
Also found in: Legal | 0.01 sec. |
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installment contract A contract providing for payment of the purchase price to the seller over time.Installment contracts are given favorable treatment by the IRS (www.irs.gov),which allows the seller to declare gain only as the seller receives principal payments each year,rather than requiring the seller to immediately take into income the entire gross amount of the purchase price.Interest is counted as income in the year paid. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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