The installment sales method is a useful technique for deferring the recognition of gains on property sales. In the Installment Sales course, we cover the general rules for installment sales, as well as how to handle a variety of special situations, such as the use of escrow accounts, like-kind exchanges, and sales to a related person. We also note how to report installment sale income to the IRS.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Identify the elements included in an installment sale payment.
Specify the calculation for adjusted basis and gross profit for an installment sale.
Recall the types of sales to which the installment method can and cannot be applied.
Specify the criteria for not electing to use the installment method.
Recall the rules related to installment sales made to a related person.
Major Topics
Key Installment
General Rules for Installment Sales
Special Situations
Reporting of Installment Sale Income
Escrow Account
Sale of a Business
