The National Directory of Certified Public Accountants

Ask A CPA - Buying & Selling a Business

What Assets In A Business Sale Cannot Be Part Of An Installment Sale ?

Any ordinary income as a result of the sale of a business asset must be reported as income in the year of sale regardless of when payment is actually received. If the business sale includes Inventory or Accounts receivables then these assets cannot be part of the installment sale. Speak to your local CPA about your business sale for more details.

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