Installment Sales

2 CPE for AFSP, EA, CFP®, CPA, CRTP

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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.