installment note


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installment note

A promissory note requiring payments over some period of time. Contrast with a single-pay loan,in which all principal and interest are due at maturity.

References in periodicals archive ?
In addition, the seller of The Ritz-Carlton, Coconut Grove provided financing to the company with an installment note for USD 3.
A self-cancelling installment note (SCIN) should also be avoided until future guidance is clarified.
In addition, unless the note arose from a sale that occurred within 12 months of formally adopting a liquidation plan (and only if the corporation is actually liquidated in that 12-month period), the shareholder receiving the installment note is taxed on its full fair market value (FMV) in the year the note is distributed.
Early payoff of the note: The buyer of your property may decide to pay off the installment note early or sell the property, in which case your installment plan would be defeated and the balance of the taxable portion would be taxable in the year the note is paid off early or the property is sold, unless the new buyer assumes the note.
Since Bill had not prepared an exit plan, and his son had no funds with which to purchase his ownership interest (which is usually the case), a long-term installment note seemed to be the only answer.
An installment sale of property involves a cash down payment and an installment note issued for the balance of the purchase price.
The use of succession planning tools such as grantor retained annuity trust, a sale to an intentionally defective grantor trust or sale in exchange for a self-canceling installment note may also be effective in reducing the value of the business for estate tax or gift tax purposes.
Deferred income on most installment sales made after 1987 can be accelerated by pledging the installment note for a loan.
the sales proceeds traceable to the life insurance proceeds) and B receives an installment note.
A self-cancelling installment note (SCIN) is an excellent way to structure intra-family transfers, as nothing is included in the estate of the seller (typically the senior generation) since the obligation is cancelled at death.
For estate tax purposes, under Alter native 1, the FMV of the installment note receivable would be an asset of the decedent's gross estate.