An installment sale is a sale of property where one or more payments are received after the close of the tax year. This mini-course discusses the particulars of installment sales, including requirements, calculation, and pitfalls. Cross issues such as a combined installment sale and like-kind exchange, the impact of related parties, pledging, repossession and contingent payments are reviewed. Also, the importance of recognizing the dangers of dealer status, inventory, purchase price allocation, and installment note disposition are emphasized.
Installment Sales. Imputed Interest and OID. Repossession. Like-Kind Exchanges. Dealer Disposition.
CPAs, financial professionals, enrolled agents and attorneys.
Recognize the importance, particularly in tax deferral, of the installment method and identify Section 453 requirements and installment method terminology. Specify the imputed interest, OID and Section 1038 repossession rules affecting installment sales and subsequent repossessions. Identify the following Section 453 pitfalls and complexities the related party limitation, the regulations governing the use of the installment sale method in like-kind exchanges and the contingent payment sale rules. Determine how to allocate and report installments payments among identified asset classes using R. R. 76-110 and the residual method recognizing Section 453 prohibitions on certain assets regarding dealer dispositions and inventory. Identify the amount of interest payable on tax-deferred income when Section 453 dispositions exceed $5 million and circumstances considered taxable dispositions of installment obligations to determine when any gain or loss is recognized.
Danny Santucci, Western CPE
Danny Santucci, BA, JD, is a prolific author of tax and financial books and articles. His legal career started with the business and litigation firm of Edwards, Edwards, and Ashton. Later he joined the Century City entertainment firm of Bushkin, Gaims, Gaines, and Jonas working for many well-known celebrities. In 1980, Danny established the law firm of Santucci, Potter, and Leanders in Irvine, California. With increasing lecture and writing commitments, Danny went into sole practice in 1995. His practice emphasizes business taxation, real estate law, and estate planning. Speaking to more than 100 groups nationally each year, he is known for spicing up his extensive expertise with an incredible sense of humor.
Non-Member Price $67.00
Member Price $58.00