Installment Sale

General information: An Installment Sale is a tax planning strategy that allows a seller to defer income recognition and capital gains taxation by receiving payments from the buyer over more than one tax year. Instead of paying taxes on the entire gain in the year of sale, the seller can distribute the tax burden over multiple years, depending on the payment structure agreed upon. An installment sale is a sale of property where you receive at least one payment after the tax year of the sale.