Will Refinancing an Installment Sale Obligation Trigger Recognition of Gain?

Real Estate Taxation, Vol. 24, Spring 1997

9 Pages Posted: 1 May 2008

See all articles by Francine J. Lipman

Francine J. Lipman

University of Nevada, Las Vegas - William S. Boyd School of Law

James E. Williamson

San Diego State University - College of Business Administration

Abstract

With the recent decrease in interest rates, many real estate owners are taking the opportunity to improve their financial position by refinancing existing mortgages at the new lower rates. This most recent movement to restructure debt raises an interesting tax question: Will the refinancing of an existing installment sale debt instrument at a lower interest rate, either by changing the terms of the original instrument or by substituting a new debt instrument in place of the original, trigger immediate recognition of the balance of the previously deferred gain for income tax purposes?

Keywords: installment obligations, refinancing debt, tax policy, gain recognition on debt structuring

JEL Classification: K34, K24, K25, Z10, D10, D11, D61

Suggested Citation

Lipman, Francine J. and Williamson, James E., Will Refinancing an Installment Sale Obligation Trigger Recognition of Gain?. Real Estate Taxation, Vol. 24, Spring 1997. Available at SSRN: https://ssrn.com/abstract=1127525

Francine J. Lipman (Contact Author)

University of Nevada, Las Vegas - William S. Boyd School of Law ( email )

4505 South Maryland Parkway
Box 451003
Las Vegas, NV 89154
United States

James E. Williamson

San Diego State University - College of Business Administration ( email )

School of Accountancy
San Diego, CA 92182-8230
United States
619-594-6021 (Phone)

HOME PAGE: http://www.sdsu.edu

Register to save articles to
your library

Register

Paper statistics

Downloads
346
Abstract Views
1,529
rank
86,913
PlumX Metrics