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An installment sale allows you to defer tax liability by reporting a portion of your gain as you receive each payment, rather than paying the entire tax bill in the year of the sale.

Calculating the taxable portion of each payment requires identifying several values: Topic no. 705, Installment Sales | Internal Revenue Service 705 jcygrlswzip

: This is the default method for reporting qualified sales, though you can choose to "opt-out" and report the full gain immediately. An installment sale allows you to defer tax