December 2023

Accounting for Sales with Contingent Obligations Sales that do not qualify as installment sales are dealer sales–also known as dealer dispositions–which are sales of personal property by a person who routinely sells that type of property. The regular sale of inventory–also called disposition of property–also does not meet the requirements of an installment sale. Further,

Tax Strategies and Implications for Installment Sales Typically, if a business sells an appreciated asset, they report that gain to the IRS in the year they finalize the sale. However, if they make that sale on installment, the IRS allows them to defer that gain and recognize it over multiple years as the installments get