This online self-study CPE course is designed for tax, accounting, and finance professionals who seek to enhance their understanding of installment sales in tax accounting. Participants will learn the vital aspects of the installment method, including Section 453 requirements and key terminology. The course addresses imputed interest, OID, and repossession rules, providing clarity on how these affect installment sales and subsequent repossessions. Furthermore, it explores the intricate pitfalls and complexities of Section 453, such as related party limitations, regulations on like-kind exchanges, and contingent payment sale rules. Participants will also gain insights into how to allocate and report installment payments among different asset classes, understanding the prohibitions and requirements related to dealer dispositions and inventory. By completing this self-study CPE course, attendees will be able to navigate the nuances of installment sales confidently, ensuring accurate reporting and effective tax strategies.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the importance, particularly in tax deferral, of the installment method and, identify Section 453 requirements and installment method terminology.
Specify the imputed interest, OID and Section 1038 repossession rules affecting installment sales and subsequent repossessions.
Identify the following Section 453 pitfalls and complexities: the related party limitation, the regulations governing the use of the installment sale method in like-kind exchanges and the contingent payment sale rules.
Determine how to allocate and report installments payments among identified asset classes using R.R. 76-110 and the residual method recognizing Section 453 prohibitions on certain assets regarding dealer dispositions and inventory.
Identify the amount of interest payable on tax-deferred income when Section 453 dispositions exceed $5 million and circumstances considered taxable dispositions of installment obligations to determine when any gain or loss is recognized.
Major Topics
Installment Sales
Imputed Interest & OID
Repossession
Like-Kind Exchanges
Dealer Disposition
