In case of asset's sale - each asset would be treated differently - as some may qualify for long term capital gain but others are not.
Both the buyer and seller involved in the sale of business assets must report to the IRS the allocation of the sales price among section 197 intangibles and the other business assets. Use Form 8594, Asset Acquisition Statement Under Section 1060, to provide this information. The buyer and seller should each attach Form 8594 to their federal income tax return for the year in which the sale occurred.
As you are selling your business using installments - the buyer will typically pay a down payment, and then the seller finance the rest so that the buyer will pay in installments over a period of time, determined in the sales agreement plus an interest.
The main benefits to installment sales is that this will generally bring a higher price than bank-financed sales, and the taxes can be reported over time as you receive payments allowing you to defer tax on capital gains.
But not all asset sales can be reported in installments - inventory or accounts receivable are not eligible for installment accounting - you should pay tax on these items within the year of making the sale, whether you have already received payment or not.
You will find reporting requirements and examples in the IRS publication 537 - http://www.irs.gov/pub/irs-pdf/p537.pdf
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You need to be very specific on what you own and what you are selling.
You wrote - The real estate itself cannot be sold on an installment basis - that is incorrect - the real estate may be sold using installments as a payment method.
Another issue is - if you are eligible to defer an income tax on capital gains over time as you receive payments. For instance - if the real property is a business or rental property - the tax may be defered, however if the real property is an inventory held specifically for resale - the tax liability is recognized in the year the property is sold regardless of the payment method.
If you are selling whole or partial interest in a LLC - the LLC will be resolved and the new owner(or owners) will register a new LLC - so you are actually selling assets owned by the LLC and should file the form 8594.
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Sorry for confusion.