Nail down installment sale tax breaks

Description

Abstract: An owner of investment or commercial real estate who is planning to sell this year could owe a hefty tax on the transaction. This article explains that one possible strategy is to arrange an installment sale, thereby spreading out the tax over time and giving a buyer more time to come up with the cash needed to seal the deal. A sidebar discusses when it might be a good idea to “elect out” of installment sale treatment on a tax return.