Other Rules

Other Rules

• • • • Other Rules
        • Electing Out of the Installment Method
          • How to elect out.
          • When to elect out.
          • Automatic 6-month extension.
          • Revoking the election.
        • Payments Received or Considered Received
          • Buyer Pays Seller’s Expenses
          • Buyer Assumes Mortgage
            • Mortgage not more than basis.
            • Mortgage more than basis.
          • Mortgage Canceled
          • Buyer Assumes Other Debts
          • Property Used as a Payment
            • Exception.
            • Debt not payable on demand.
            • Third-party note.
            • Bond.
            • Buyer’s note.
          • Installment Obligation Used as Security (Pledge Rule)
            • Limit.
            • Installment payments.
            • Exception.
        • Escrow Account
          • Escrow established in a later year.
          • Substantial restriction.
        • Depreciation Recapture Income
        • Sale to a Related Person
          • Sale of Depreciable Property
            • Exception.
            • Related person.
          • Sale and Later Disposition
            • Related person.
            • Exception.
        • Like-Kind Exchange
          • Installment payments.
          • Deferred exchanges.
          • Exchanges started in and completed after 2017.
        • Contingent Payment Sale
        • Single Sale of Several Assets
        • Sale of a Business
          • Allocation of Selling Price
            • Inventory.
            • Residual method.
            • Agreement.
            • Reporting requirement.
          • Sale of Partnership Interest
          • Example—Sale of a Business
            • Installment income for 2020.
            • Installment income after 2020.
        • Unstated Interest and Original Issue Discount (OID)
          • Treatment of unstated interest and OID.
          • Rules for the seller.
          • Rules for the buyer.
          • Adequate stated interest.
          • Test rate of interest.
          • Applicable federal rate (AFR).
          • Seller-financed sales.
          • Certain land transfers between related persons.
          • Internal Revenue Code sections 1274 and 483.
          • Determining whether section 1274 or section 483 applies.
          • Section 1274
            • Cash method debt instrument.
            • Land transfers between related persons.
          • Section 483
          • Exceptions to Sections 1274 and 483
            • More information.