Advance Payments

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Advance Payment

A payment on an obligation that is paid well in advance. For example, if one pays May's rent in April, the payment is an advance payment. Often, though not always, the advance payment results in a discount on the amount owed. It is also called a payment in advance.
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Advance Payments

Advance payments are prepayments for services or goods. They generally are includible in gross income upon receipt for both accrual- and cash-basis taxpayers.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
"The advance payments will provide some support to survivors until the full redress scheme is rolled out in 2021."
451(c) requires a taxpayer to include an advance payment in gross income in the tax year of receipt, unless it elects to defer the recognition of all or a portion of the advance payment to the tax year succeeding the year it is received.
The Advance Payment Scheme has been set at a flat rate of PS10,000 and will be discretionary.
The facility risked being cancelled if the government did not make advance payments, he added.
It is to be noted that the SBP had withdrawn the facility extended to Authorized Dealers to make import advance payments against irrevocable Letter of Credit (L/C) up to 100 percent of the value of the goods and up to $10,000 per invoice for the import of all eligible items without the requirement on the subject merit consideration.
Earlier in July 2018, the SBP had restricted banks from making advance payments.
The frequent Motability offers allow you to spread the vehicle costs with little or NO advance payment and is a perfect way of getting behind the wheel of a new Toyota specially modified for you.
"Visitors to our Hadfield Road showroom can now benefit from comprehensive choice and the availability of nil advance payments on selected models and competitive terms across the range, we're expecting to be very busy over the next few months!" Automatic variants are a popular choice for many Victoria Park Mazda Motability customers and they are available across the Mazda range within the Motability scheme, where advance payments start from PS199 deposit on the Mazda2, PS99 on the Mazda3 range and PS999 on the Mazda6 range.
Similarly, one of the gravest predicaments faced by the consumers of new cars is the requirement of hefty advance payments for placing the order to book a car.
The Office of Chief Counsel advised that a taxpayer was not properly using the method of accounting for advance payments in Regs.
These farmers, who were affected by the spring blizzards, were given advance payments of up to 50% in October.
In total Volvo has 13 versions of the V40 on offer to Motability customers with advance payments rising to PS2,499 for the high grade automatic V40 D3 Cross Country SE which is fitted with a two-litre diesel developing 150bhp.

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