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Significant Tax Benefits Can Be Gained by Using an Alternative

Question 3

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Significant tax benefits can be gained by using an alternative financing arrangement for commercial property transactions.When the seller allows the buyer to pay the purchase price over a number of years,recognition of the taxable gain can be spread over several years,thereby reducing the present value of the tax payments.This type of financing arrangement is commonly referred to as a(n) :


A) installment sale
B) joint venture
C) land sale-leaseback
D) complete sale-leaseback

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