installment contract


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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.

References in periodicals archive ?
20% of the budget allocation prior to the completion of the second installment contract (this guarantee will be canceled upon signing the certificate of acceptance).
These extras are included on the retail installment contract as part of the credit sale.
7) The IRS made no adjustments to ACC's installment contract expenditures for 1994.
Ally said it does not make loans directly to consumers, but rather, it purchases installment contracts originated by auto dealers.
The company originates indirect retail installment contracts through a network of over 20,000 new and used car dealers throughout the United States.
Unlike the compensation costs, the overhead expenses did not originate in the process of ACC's acquisition of installment contracts and generally had no meaningful relationship to the number of credit applications analyzed.