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Installment Sales

2 CPE for AFSP, EA, CFP®, CPA, CRTP

The installment sale method is an effective tax strategy. It allows taxpayers to spread the recognition of gain over multiple years, potentially reducing their overall tax liability and optimizing their financial outcomes. During this session, we’ll explore the mechanics of installment sales, including the eligibility requirements and the tax benefits of deferring capital gains. We’ll walk through the process of reporting installment sales on Form 6252, Installment Sale Income, ensuring a clear understanding of calculating and reporting payments received over time. Additionally, we’ll discuss strategic considerations such as when to opt out of the installment method, the steps involved in making that election and how to handle purchase price adjustments that may arise after the sale. 

Objectives
Upon completion of this session, you will be able to:

  • Describe the requirements for using the installment sale method 

  • Evaluate the tax implications of an installment sale and when it may benefit a taxpayer  

  • Summarize the effects of a purchase price adjustment and how to report it 

  • Prepare Form 6252  

CPE information
Duration: 100 minutes
Course level: Intermediate
Prerequisite: Basic understanding of individual income tax
Advanced preparation: None
Delivery method: Group Live

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