Installment Sales - Real Estate Tax Tips

An installment sale is a sale of property where you get at least one payment after the tax year of the sale. If you dispose of property in an installment sale, your description part of your gain when you receive each installment payment. You cannot use the installment method to statement a loss.

General Rules

If a sale qualifies as an installment sale, the gains have to be reported under the installment method unless:

* You elect out of by means of the installment method
* You are not a qualified accrual method taxpayer