Land contract payoff costs

[LCP]

When the contract is paid off additional costs are common to transfer the title, etc. If there is an installment sale associated with it, how are those costs handled?

If it is an expense associated with the contract I can see it being an investment expense. But since it is more related to the property, wouldn't it be a selling cost and reduce the remaining gross profit somehow?

[Bees Knees]

If additional selling costs are associated with an installment sale after the first year, the gross profit percentage is recalculated in that year using the additional costs to reduce the remaining profit to recognize under the installment method. So if this happens in the final year, you simply reduce your profit realized in that final year by the increased selling costs.