Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

In general, when an individual sells land and is going to

Customer Question
get the payment in one...
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: 1 year ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 26 minutes by:
11/16/2016
Tax Professional: Barbara, Enrolled Agent replied 1 year ago
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,438
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
Verified

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

Ask Your Own Tax Question
Tax Professional: Barbara, Enrolled Agent replied 1 year 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

Ask Your Own Tax Question
Ask Barbara Your Own Question
Barbara
Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 4,438
4,438 Satisfied Customers
Experience: 20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.

Barbara is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,338 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,980 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
Can an individual who sold qualified QSBS stock in January
can an individual who sold qualified QSBS stock in January 2017 under an installment sale agreement defer/rollover the 2018 installment payment under section 1045 ? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
502 satisfied customers
Wanted to know if installation of equipment is taxable in
wanted to know if installation of equipment is taxable in florida? thanks. … read more
Barbara
Barbara
Enrolled Agent
4,438 satisfied customers
I sold the business assets in an installment sale. Proceeds
I sold the business assets in an installment sale. Proceeds were: … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I sold my chiropractic practice in 2005 in an installment
I sold my chiropractic practice in 2005 in an installment sale. The installments were reported as capital gain from created good will. The buyer went bankrupt this year and still owes me $57000. Can I… read more
Carter McBride
Carter McBride
LLM
239 satisfied customers
What is the effect of the latest tax changes on individual
what is the effect of the latest tax changes on individual income taxes for individuals in the $60-70,000 range with no special deductins? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Rental real estate installment sale. Commercial rental real
Rental real estate installment sale.Commercial rental real estate (non related party transaction) has been owned/rented for over 10 years. It is owned 70% by individual and 30% by ROTH.Client is going… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Tax question I have been under an Installment Tax Agreement
Tax questionI have been under an Installment Tax Agreement with the IRS for the past three years for $580.00 per month or $6,960.00 in years 2015 and 2016The installment payment covers prior tax years… read more
Barbara
Barbara
Enrolled Agent
4,438 satisfied customers
I have a question on Form 6252 Installment sale on Property.
Hi I have a question on Form 6252 Installment sale on Property … read more
Barbara
Barbara
Enrolled Agent
4,438 satisfied customers
An individual will own a new solar panel installation in a
An individual will own a new solar panel installation in a single member LLC disregarded entity at a market price. He will take 30% ITC and MACRs depreciation. The capital structure will be 35% cash a… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Short Term Installment Sale. Client purchased a property,
Short Term Installment Sale. Client purchased a property, then sold for a gain in less than 1 year. The sale is an installment sale. My software is picking up the entire gain as ordinary income this y… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,275 satisfied customers
Wife owns property individual, picks up rental income on
wife owns property individual, picks up rental income on Sched E - husband and wife live together in another home. Wife wants to rent husband the house for his business - both Sched C - does this make… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Installment Sales - A taxpayer owns rental property (over
Installment Sales -A taxpayer owns rental property (over several years). Taxpayer is selling rental property and will hold the mortgage for the purchaser. Will this be considered a straight sale, reco… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,980 satisfied customers
Is a 1040 US Individual Income Tax Return federal income
Hi Is a 1040 US Individual Income Tax Return federal income taxes owed to the US government? Or is it FICA? I received a letter owing some back taxes and since I'm a priest with a weird set of tax exc… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
686 satisfied customers
I sold property with a down payment plus installment sale.
I sold property with a down payment plus installment sale. How do I record the down payment? I assume the installment sale will be reported on 6252, but how do I address the down payment? If I record … read more
Brian Michels
Brian Michels
Partner, CPA
Bachelors of Business Administration
154 satisfied customers
In selling an s-corp, if an installment sale is setup, but
in selling an s-corp, if an installment sale is setup, but NO installments are made to me, is that a red flag?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I had an installment sale I was reporting on my personal
I had an installment sale I was reporting on my personal return. Beginning January 1, 2016 someone else took over and started receiving installment payments. I paid $7,000 in attorney fees to transfer… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
If a taxpayer sells a business on an installment sale basis,
If a taxpayer sells a business on an installment sale basis, where no interest is stated in the payment plan, is interest imputed, and if so, how? Would one allocate some of the total purchase price t… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
New law for repair, maintennance and installation sales tax
New law for repair, maintennance and installation sales tax take in effect 1/1/207 for contractors. Im reading all these exemptions and want to know if capital improvements and new construction is exe… read more
Barbara
Barbara
Enrolled Agent
4,438 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x