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LSDefine

Simple English definitions for legal terms

installment sale

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A quick definition of installment sale:

An installment sale is when someone sells something and receives at least one payment after the year of the sale. This type of sale is governed by a law called section 453. People who use an installment sale can report how much money they made in parts, after they receive each payment. But not all sales can be installment sales, and some people choose not to use this method. If someone sells things regularly, they can't use an installment sale. And if someone loses money on a sale, they can't use this method either.

A more thorough explanation:

An installment sale is a type of property sale where the seller receives at least one payment after the tax year of the sale. This means that the buyer pays for the property over time, rather than all at once. The IRS has specific rules for how installment sales are taxed.

For example, if someone sells a piece of property for $100,000 and the buyer pays $20,000 per year for five years, this would be an installment sale. The seller would report part of the gain from the sale each year, based on how much they received in payments.

It's important to note that not all sales qualify for the installment sale method. For example, if someone regularly sells a certain type of property, those sales would not qualify. Additionally, if a sale results in a loss, the installment method cannot be used.

installment contract | instance and expense test

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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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