The installment method applies when a payment will be received after the tax year of the sale:
A)By an investor who sold real estate at a gain.
B)By an investor who sold real estate at a loss.
C)By an appliance dealer who sold inventory at a gain.
D)By an investor who sold IBM Corporation common stock at a gain.
E)None of these.

Question

Quizplus · Accepted Answer

The installment method is applicable to investors who have sold real estate at a gain and will receive payment after the tax year of the sale. The other options are not relevant to the installment method.

The Installment Method Applies When a Payment Will Be Received