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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3181
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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In general, when an individual sells land and is going to

Customer Question

in general, when an individual sells land and is going to get the payment in one lump sum, he may be propelled into a higher tax bracket. Would it be more advantageous for him to take the payments over a 2-3 year time period?
Submitted: 5 months ago.
Category: Tax
Expert:  Barbara replied 5 months ago.

Thank you for requesting me.

It appears that you are referring to an installment sale.

Under the installment method, you include in income each year only part of the gain you receive, or are considered to have received.

You can read more about this in the following link:

https://www.irs.gov/taxtopics/tc705.html

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 5 months ago.

Just following up with you to see if you have any other questions. If so, please let me know so I can assist you further.

Best regards,

Barb