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 October WTI crude contract price on that day was $109.
Last year, the Kyoto and Saitama district courts ordered makers in similar suits to repay 5 percent of the contract prices.
In the first case, this happens because the actual dollar price decreases, while in the second case, the dollar value of the increased yen price is less than the contract price of $9.
It argued that because the Applegates had the unrestricted right to demand the entire contract price at any time during the first year, there was in fact full payment during the first year.
31) Nevertheless, the costs properly allocable to such other items and incurred before the end of the year in which final completion and acceptance occurs, as well as a portion of the gross contract price reasonably allocable to these other items, are to be separated from the long-term contract items and accounted for under a proper method of accounting other than a long-term contract method or the cash method.
It specifies that when the contractor gives a federal agency a price lower than the schedule contract price for the item, and the order is within the maximum order limitation (MOL), an equivalent price reduction applies to all subsequent sales.
If the new taxpayer accounts for the contract using the PCM, the total contract price would be any amount the new taxpayer reasonably expects to receive under the contract--consistent with Regs.
The loss adjustment is calculated by comparing the total contract price with the estimated cost at completion (that is, total cost incurred before the termination, plus the estimated costs to complete the contract if the termination had not occurred): The allowable termination settlement cost then is computed by multiplying the loss adjustment factor by the allowable costs incurred by the contractor excluding settlement costs:
Instill Food Spend Management is a web-based, hosted solution that allows foodservice operators to ensure they are capturing the full value of their contracts by easily monitoring and enforcing unit compliance with order guides while identifying contract price variances, purchases eligible for rebates, SKU rationalization opportunities and other cost savings.
The total contract price in the gross profit ratio formula includes current and future direct payments.
460(b) on the amount of tax liability deferred or accelerated as a result of overestimating or underestimating total contract price or contract costs.

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