Installment sales and alternatives: a public service of Davidson Law Firm.

From: Arkansas Business | Date: August 20, 2007| Author: | Copyright information

When an investor must sell real estate but cannot find a cash buyer, he or she may have to settle for installment payments. Before agreeing to an installment sale, the investor should (1) compare the alternatives (i.e. cash sale, installment sale and [section]1031 transaction), (2) gauge the risks involved, and (3) determine the overall tax impact of the transaction.

COMPARING THE ALTERNATIVES

The investor must decide whether the installment sale is better than waiting for a cash buyer, or substantially reducing the price for a quicker cash sale. The answer will depend on ...

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