Installment Sales: Turn a One-Time Sale into Steady Income

Neerja Kwatra
Oct 28
1 min read

Selling doesn’t have to mean a massive one-year tax bill. Under Section 453, you can spread the gain over time through an installment sale.

How It Works:

You finance part of the sale for the buyer.
You receive payments (and pay tax) gradually as income arrives.

Benefits:

Smooths income over several years.
Reduces immediate tax burden.
Creates predictable cash flow.

💡 Key Takeaway: An installment sale can turn a big gain into manageable, long-term income.

⚠️ This blog is for informational purposes only and does not constitute tax, legal, or accounting advice. Please consult your CPA for guidance specific to your situation.

Recent Posts

See All

CapEx vs. OpEx: The Line That Defines Your Valuation

Every investor should know where to draw the line between a repair and an improvement. Misclassification can inflate expenses, distort NOI, and mislead buyers or lenders. CapEx (Capital Expenditures)

Quarterly Taxes & 1099 Management: Staying Ahead of the IRS

Realtors are independent contractors, meaning taxes aren’t automatically withheld — but the IRS still expects quarterly payments. Due Dates: April 15, June 15, September 15, and January 15 (next year

Health Insurance & HSA Benefits for Self-Employed Realtors

Self-employed Realtors can deduct health insurance premiums — and an HSA (Health Savings Account) can double the tax benefit. Deductible Premiums: Health, dental, and long-term care insurance. Applies

Comments