Installment Sales: Tax Savings, Compliance, & Reporting (Completed)

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This online course provides a practical and in‑depth review of the federal tax rules governing installment sales and how to properly report them for maximum tax efficiency and full compliance. Participants will learn how installment sales apply across a wide range of transactions—including real estate, business asset sales, and closely held business transfers—and how these rules can be strategically used to manage taxable income and cash flow for clients.

The course also walks through Form 6252 line‑by‑line, highlights recent and expanded IRS reporting and disclosure requirements, and explains common pitfalls involving interest income, principal recovery, capital gain recognition, and related‑party transactions. By attending, tax professionals will gain actionable guidance they can immediately apply when advising clients or preparing returns involving installment sales.

Who Should Attend
This course is designed for tax and financial professionals who want to confidently navigate installment sale transactions and uncover valuable tax‑planning opportunities for their clients.

Topics Covered

• Overview of installment sale rules under IRC §453
• Qualifying and non‑qualifying installment sale transactions
• Real estate installment sales
• Sale of business assets and closely held businesses
• Computing gross profit, contract price, and gross profit percentage
• Interest income and imputed interest rules
• Form 6252 preparation and reporting requirements
• Recent and expanded IRS compliance and disclosure requirements
• Related‑party installment sales and special restrictions
• Planning opportunities and common compliance pitfalls

Learning Objectives

• Identify transactions that qualify for installment sale treatment under federal tax law.
• Calculate and properly allocate principal recovery, interest income, and capital gain on installment payments.
• Prepare and report installment sales using Form 6252 in compliance with current IRS requirements.
• Assess the tax impact of related‑party installment sales and determine when special rules apply.
• Evaluate installment sale elections and alternatives to help clients optimize tax outcomes.

Level
Basic

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None