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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29778
Experience:  Taxes, Immigration, Labor Relations
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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: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Yes - you will be able to use an installment reporting method.
Expert:  Lev replied 1 year 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.