Installment Sale

[Possi]

Thanks

I'll use the website and I'll have confidence in TWise, too.

[FEDUKE404]

Observation

I'm a little bit amazed at some of the comments here re how "complicated" an installment sale is.

Showing my age, I prepared/maintained many installment sales prior to ever having a computer do all the work. The secret is to get the first year done properly. After that it's just a matter of having the applicable percent available, separating the principal/interest received (Sch D & B) from that year's payments, and keeping track of the remaining (declining) principal amount. (An amortization schedule helps....)

I found it far simpler than most depreciation calculations (yeah, I had to do those also!).

Of course, the biggest headache I ever had with an installment sale was going backward to calculate the "imputed interest" as the seller had just forgotten to include that and thought he was collecting LTCG only each year. It made for some very messy...and expensive...amended returns.

FE