Using the installment method with escrow arrangements
Tax practitioners may incorrectly assume that if sales proceeds are to be received in tax years after the year of sale, the sale is reported on the installment method and not currently taxed. Generally, use of the installment method is mandatory of the seller realizes a gain and the transaction meet...
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Published in | The Tax Adviser Vol. 31; no. 5; p. 340 |
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Main Author | |
Format | Trade Publication Article |
Language | English |
Published |
New York
American Institute of Certified Public Accountants
01.05.2000
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Subjects | |
Online Access | Get full text |
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Summary: | Tax practitioners may incorrectly assume that if sales proceeds are to be received in tax years after the year of sale, the sale is reported on the installment method and not currently taxed. Generally, use of the installment method is mandatory of the seller realizes a gain and the transaction meets the Sec. 453 requirements. "Payment" may include not only amounts actually received, but amounts constructively received as well. |
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ISSN: | 0039-9957 |