Asked by Katie Lucas on Jun 26, 2024
Verified
Taxpayers are required to use the installment method for deferred payments unless the taxpayer elects not to use the installment method.
Installment Method
A tax method allowing income recognition from sales or transfers of property over time as the seller receives payments.
Deferred Payments
Payments or income that are delayed to a future date, which can have various tax implications depending on the nature of the deferral and the tax rules applicable.
- Comprehend the constraints and qualifications necessary for utilizing the installment strategy in recognizing revenues.
Verified Answer
BK
breanna kellyJun 29, 2024
Final Answer :
True
Explanation :
The installment method allows taxpayers to recognize gain on the sale of property over the period payments are received. Taxpayers are generally required to use this method for deferred payments unless they elect not to.
Learning Objectives
- Comprehend the constraints and qualifications necessary for utilizing the installment strategy in recognizing revenues.