Tag Archives: “wraparound” mortgages

An “installment sale” is a disposition of property in which at least one “payment” is to be received after the close of the taxable year in which the disposition occurs. IRC §453(b)(1). The “installment method” is the default method prescribed by the Code to report income from installment transactions unless the taxpayer elects not to use the installment method. This election must be made no later than the due date of the tax return (including extensions) for the taxable year in which the disposition occurs. IRC §453(d)(1). Continue reading →