Using the installment method with escrow arrangements

• Published in: The Tax Adviser Vol. 31; no. 5; p. 340
• Main Author: Andreozzi, William G
• Format: Trade Publication Article
• Language: English
• Published: New York American Institute of Certified Public Accountants 01.05.2000
• Subjects: Agreements; Cash basis accounting; Escrow accounts; Installment method; Installment sales; Payments; Restrictions; State court decisions; Tax planning; Taxpayers; United States > US

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...