Installment Sales Reporting Under Section 453: Avoiding Pitfalls
Contingent, Related Party, Depreciation Recapture, and Large Installment Sales
Recording of a 110-minute CPE webinar with Q&A
This course will address the various tax issues surrounding use of the installment sales method of reporting (“installment method”) on the sale of property. Unique scenarios affecting use of the installment method will also be discussed, including contingent payments, depreciation recapture, sales between related parties, among others, as well as electing out of the installment method. The webinar will provide an overview of installment sales, the benefits, risks and alternatives to the installment method and how sellers should report installment sales for federal tax purposes.
Outline
- Use of the installment method: an overview
- Calculation of taxes on installment payments
- Electing out of the installment method
- Contingent payments in installment sales
- Installment sales between related parties
- Property ineligible for installment sale reporting
- Depreciation recapture issues
- Self-Cancelling Installment Notes (SCINs)
- Structured installment sales transactions
- Filling out Federal Form 6252 – Installment Sale Income
Benefits
The panel will discuss these and other critical issues:
- Who is allowed to use the installment method and when?
- Are there transactions ineligible for reporting gain on the installment method?
- Is there a way to mitigate the recognition of gain for depreciation recapture on installment sales?
- What are the tax rules for contingent payment sales and how do they apply?
- What are the related party considerations in installment sales?
- What is the interest charge for installment sale obligations over $5,000,000?
Faculty
Griffin H. Bridgers
Member
Hutchins & Associates
Mr. Bridgers' practice encompasses all areas of private wealth and family business. In addition to estate... | Read More
Mr. Bridgers' practice encompasses all areas of private wealth and family business. In addition to estate planning and estate administration, he is experienced in mergers and acquisitions, taxation, business transactions, franchising, commercial contracts, asset protection, executive compensation, employee benefits, qualified and non-qualified retirement plans, and nonprofit organizations. He counsels closely-held and family businesses, and nonprofit organizations, with their planning, succession, and liquidity needs in a variety of industries including tech, restaurant and retail, healthcare, manufacturing, construction, real estate, financial services, consulting, and professional staffing.
Close
Raul A. Escatel, J.D., LL.M.
Senior Partner
Ascendant Law Group
Mr. Escatel brings extensive experience and close personal attention to the representation of businesses and... | Read More
Mr. Escatel brings extensive experience and close personal attention to the representation of businesses and individuals in a broad range of tax matters, both as an advisor and as an advocate. He has an established track record of successfully representing his clients in significant income tax, sales and use tax, and employment tax issues before the IRS, the California Franchise Tax Board, and various administrative and local taxing agencies. Further, Mr. Escatel is certified as a Tax Specialist by the State Bar of California Board of Legal Specialization.
Close
Alexander D. Lee
Managing Partner
Ascendant Law Group
Mr. Lee has a multistate practice that focuses on tax, trust and estates. He advises clients on domestic and... | Read More
Mr. Lee has a multistate practice that focuses on tax, trust and estates. He advises clients on domestic and international tax matters, including tax planning with respect to their structures, transactions, and estate planning matters. Mr. Lee has experience advising on issues relating to tax deferral strategies, tax treaties, pre-immigration planning for foreigners moving to the U.S., expatriation planning, tax planning for foreign companies doing business in the U.S., and both domestic and non-resident alien estate planning. He is regularly invited to speak at seminars sponsored by large financial institutions, including New York Life, Prudential AXA, MetLife, and Mass Mutual, as well as, the Korean American CPA Association.
Close
