Sales of Property Outside Section 453
64 Taxes 153 (1986)
13 Pages Posted: 6 Sep 2009
Date Written: 1986
When the installment sale provisions of the Internal Revenue Code apply to a casual sale of property, both the timing of taxation and the amount of gain that must be included in gross income in each year are fairly clearly and objectively determined. When those provisions do not apply, however, both analytical theory and tax practice are in a state of confusion and have been so for many years. This confusion has been exacerbated by the recently promulgated temporary regulation adopted by the Internal Revenue Service under the revised installment sale provisions. This article critically analyzes that regulation and offers two modifications to the IRS’s approach that are necessary to inject clarity and fairness into the taxation of non-installment-sale transactions.
Keywords: Non-installment-sale Transactions, Internal Revenue Code section 453, Internal Revenue Service Regulations
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