installment sale


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Installment sale

The sale of an asset in exchange for a specified series of payments (the installments).

Installment Sale

A sale in which the buyer makes a series of payments instead of a lump sum in order to compensate the seller. The payments in an installment sale often, but do not always, include interest to pay the seller for accepting the credit risk that the buyer will not make payments in a timely manner. An installment sale can have tax advantages for the seller. See also: Credit sale.

installment sale

A sale in which the buyer is scheduled to make a series of payments over a period of time. An installment sale can offer certain tax advantages; however, the seller may have a lengthy wait before receiving the entire proceeds. Virtually any asset, including securities, may be disposed of through an installment sale.

installment sale

See installment contract.

References in periodicals archive ?
inventory, items sold at a loss, and other items ineligible for installment sale treatment.
Use Installment Sale To Defer Gain On Sales: Ordinarily, the entire profit from a sale is taxable in the year of sale.
The scheme relied on applying the installment sale (see "Installment Sales" on page 67) and contingency sale rules to sales of foreign currency for cash or London interbank offered rate (Libor) notes (see "Security Definitions" on page 68).
This view changes somewhat if the taxpayer is in a high tax bracket when the asset is disposed of, or has engaged in an installment sale.
This article describes the structured sale, which is a blend of an installment sale and a guaranteed payment stream.
Under the plan AHP became a 10% partner in a foreign partnership, which engaged in a contingent installment sale.
Using an installment sale rather than reporting all of the gain in one year, is one way to minimize taxes.
453A that applies to certain installment sale obligations.
If the stated interest rate on an installment sale note is not "fair market" in the eyes of the IRS, the IRS may input a fair interest rate.
cash sale, installment sale and [section]1031 transaction), (2) gauge the risks involved, and (3) determine the overall tax impact of the transaction.
In a 1031 exchange, this "cash boot" (boot caused by receipt of cash) is subject to the installment sale rules, meaning that the proceeds are taxed when you receive them.
A question arose on the TaxTalk list-serve regarding California tax implications when a California resident is about to sell a California corporation's stock via an installment sale, but will be moving out of state "to avoid the California tax on the sale.