Installment Sales
If you sell a property this year to a credit worthy buyer, and you don't need all of the sales proceeds immediately, consider an installment sale. When using the installment method of accounting, gain is reported as payments are received. This method can be used by taxpayers under certain circumstances. The rules for installment sales are complex. However, if usable, the installment method can significantly postpone the payment of taxes. Generally, the smart course of action is to collect your sales price up-front and pay the income taxes currently. If you are considering an installment sale, contact us to determine if the method is available for your transaction.