Consider an Installment Sale

Are you having a difficult time trying to sell a piece of property? We all know in this economy it's a "buyer's market." Getting that property sold may take a year or two and your finances may not be able to wait that long.

You may want to consider an installment sale, which is selling the property and getting paid in installments versus one lump sum. Under this installment method, the income reported includes only part of the gain you receive each year, or are considered to have received. Meaning you only pay taxes on the payments received instead of the entire sale amount. (Special rules apply to rental properties or anything that has been depreciated).

Under the new tax laws, installment sales may even be beneficial to the buyer as well, depending on the circumstances. For example, if the seller agrees to an installment land contract with a first-time home buyer, the buyer would be eligible to receive the First-Time Homebuyer's credit.