Posted by Jimmy on August 15, 2007 at 11:11:38:
Instalment sales are pretty easy to understand. the tax consequences are recognized over the period of time that note payments are received. first, you separate out the interest expense part of the payments. the remainder (the note principal payments) will be a combination of depreciation recapture income, capital gain and return of basis (if any). and the recognition of these incomes are spread over the life of the note.
Seller’s tax with installment sale - Posted by Not The Tax Man
Posted by Not The Tax Man on August 06, 2007 at 14:20:15:
When a seller who has owned an income property
for many years sells on an installment sale,
can most of the tax be deferred, even without
doing a 1031 exchange?
For example, is depreciation recapture always
in the year of the sale or can it be paid over time?
Can an installment sale be structured to defer tax?
What is the best strategy for deferring tax with an
installment sale without a 1031 exchange?
Thanks.