3.12 Installment Sales

• Library: Real Estate Practice Deskbook (2019 Ed.)

2. (§3.12) Installment Sales

Under the Installment Sales Revision Act of 1980, Pub. L. No. 96-471, 94 Stat. 2247, codified in scattered sections of 26 U.S.C., installment sale rules generally permit the taxpayer to spread gain and the income tax on that gain over the period during which payments are actually received. These rules avoid bunching of income in the year of closing and payment of tax on gain that has not yet been received. Recapture of depreciation in full in the year of disposition is required

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