An income tax rule under which the gain on a sale of property in which the purchase price is received in more than on taxable year of the seller is reported ratably as payments are received. A seller may elect against application of the rule and report all of the gain in the year of sale. The installment sale is a classic form of estate freeze (i.e., the seller’s estate will include only the proceeds of the sale — not any further appreciation in value of the property). § 453.
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