Installment Agreement Meaning

(Depending on the specific terms of the agreement, this could indeed be the case.) The tempestration seller of real estate that is not used in a business or transaction may choose a instalment payment method to report the capital gain on the sale of real estate. IRS Tax Topic 705 provides an overview of the tax treatment of tempered sales. IrS Publication 537 provides more detailed instructions, including the calculation of the gross margin of the transaction, the percentage of gross margin applicable to each tranche and sales revenue.