Installment sale
Also called: Section 453 · seller financing tax deferral
A sale in which at least one payment is received after the tax year of sale and gain may be recognized over time under the installment method when the rules apply.
What it means in practice.
Section 453 installment reporting is separate from Section 1031. Some transactions can involve both exchange and installment concepts, but coordination is technical.
Why it matters.
“Deferral” can come from different Code sections; users should identify which mechanism they are actually using.
Additional notes.
Section 453 installment reporting is separate from Section 1031. Some transactions can involve both exchange and installment concepts, but coordination is technical.
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