Installment Sales: Turning Sales into Cash Flow

Neerja Kwatra
Oct 28
1 min read

Selling a property doesn’t mean you must pay all the taxes upfront. Section 453 allows recognition of gain as payments are received.

Best Uses:

Land sales, phased developments, or seller-financed projects.
Long-term payment agreements that spread out taxable income.

Avoid: Using this method for dealer property — it doesn’t qualify.

💡 Key Takeaway: Smart timing and structure can turn a one-time sale into multi-year tax efficiency.

⚠️ 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.

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