How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

If I sell my partnership interest on 12-31-16 ,000 and

Customer Question

If I sell my partnership interest on 12-31-16 for 400,000 and my basis is 150,000 with a gain 250,000 can I elect the installment method if an I recieve no cash on 12-31-16 but receive all the proceeds on 1-31-17 my partnership is being redeemed and it is a real estate and ony straight line depreciation has being used and I have held been a partner for over 10 years- gain to be regonized on 12-31-16 but cash on 12-31-17
Submitted: 8 months ago.
Category: Tax
Expert:  Lev replied 8 months ago.
Yes - you will be able to use an installment reporting method.
Expert:  Lev replied 8 months ago.
An installment sale is a sale of property where you will receive at least one payment after the tax year in which the sale occurs. You are required to report gain on an installment sale under the installment method unless you "elect out" on or before the due date for filing your tax return (including extensions) for the year of the sale.So - if you do not specifically elect out - you woudl be required to use the installment reporting method.Let me know if you need any help with reporting.