If an asset is sold and some or the entire sales price will be received in a future year, the installment sales rules may be used.
The installment sale rules require that the gain be allocated to each year in proportion to the amount received during the year. The tax rate applied to income recognized for that year will be the rates then in force, not the rate that applied at the time of the sale.
Please call us if you have any questions about this election.
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