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Taking Advantage of Installment Sales (INS2)

  • Format Self-Study Download
  • Credits 2.00
  • Level Intermediate
  • Field of Study Taxes (2)

Overview

When real property is sold for a gain, we always try to find ways to defer recognizing income so that it won’t be necessary to send a check to Uncle Sam. There is a provision within the Internal Revenue Code that allows the taxpayer to defer recognition of immediate taxable gain in the year of sale known as an “installment sale.” Knowing how and when to utilize this provision makes the Accounting and Finance Professionals very valuable to either their client or the entity they work for. We will also discuss recent proposals that could impact the future of this provision.



Major Topics:

  • How does the IRC define an installment sale under IRC Sec 453?
  • When can a taxpayer utilize the provisions of IRC Sec 453?
  • When should a taxpayer utilize the provisions of an installment sale and when should it be avoided?
  • How does the issue of a “dealer” vs. a “non-dealer” impact the use of the installment sale method?
  • Reporting an installment sale when related parties are involved
  • Calculating an installment sale
  • How has the Tax Cuts and Jobs Act impacted the use of the installment sale method?

Learning Objectives:

  • Utilize the provisions of IRC Sec 453 to defer recognizing gain on the sale of real property via an installment sale

Who should take this course:

Accounting and Finance Professionals who either represent or work for entities that own real property

A basic knowledge of the provisions for recognizing gain or loss on the sale of real property

None

Yes

No

No

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