Overview
This course begins with an overview of installment sales. It then covers new gross profit percentages when sales prices are reduced in future years as well as the specific forms that may be included in a taxpayer's return. It concludes with a number of problems and issues that may arise with installment sales.
Prerequisites
2-4 years tax preparation experience.
Objectives
At the conclusion of this class the student should understand sales that do and do not qualify for installment tax treatment. We discuss, with over a dozen example completed forms, repossessions, renegotiations and contingent installment sales. We show the student how and when to elect out of installment treatment and discuss related party sales as well as their subsequent resales. The course ends with a comprehensive example and discussion of structured installment sales.
