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Installment Sale Benefits and Implications
If you use an installment sale to help sell property, you can benefit from tax deferral and possibly lower your overall tax bill. However, be cautious of certain tax traps if you do. Installment sale defined Generally, you create an installment sale when you receive payments for sold property in the tax year of the sale and at least one other tax year. For instance, if you sell real estate for a profit in 2025 and receive payments through 2028, …
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Installment Sale Benefits and Implications
If you use an installment sale to help sell property, you can benefit from tax deferral and possibly lower your overall tax bill. However, be cautious of certain tax traps if you do. Installment sale defined Generally, you create an installment sale when you receive payments for sold property in the tax year of the sale and at least one other tax year. For instance, if you sell real estate for a profit in 2025 and receive payments through 2028, …
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