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Which of the following taxpayers may report the sale of their property as an installment sale?

1. Alexander. He sold a backhoe to Reno for $8,000. Reno made two payments, one payment of $ 2,500 on March 15 and one payment of $5,500 on September 15 of the tax year.

Alexander paid $ 6,000 for the backhoe when it was new; it had fully depreciated before he sold it,

2. Georgia. She sold her entire inventory, valued at $9000, to Maxim for $12,000, Maxim intends to pay $4,000 per year, plus interest, for the next three years.

3, Jackson. He sold a plot of land for $50,000/ He purchased the land for $ 45,000 and paid $ 10,000 to improve it, His buyer intends to pay for the land over five years.

4, Sita. She sold a rental condominium for $120,000. She purchased it for $ 95,000 and had claimed $20,000 depreciation. Her buyer intends to pay her $19,000 per year plus 6% interest for five years.

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Anonymous answered this1,532 answers

Sita. She sold a rental condominium for $120,000. She purchased it for $ 95,000 and had claimed $20,000 depreciation. Her buyer intends to pay her $19,000 per year plus 6% interest for five years.

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