A Taxpayer Is Selling Land Held for Investment Purposes

question 1605

Multiple Choice

A taxpayer is selling land held for investment purposes. Payments will be received under the terms of a five- year installment note. Which of the following circumstances would suggest consideration of an election out of the installment method?

• A) A taxpayer plans to reduce her employment to part- time next year when she has her first child. She believes she will continue part- time until the child starts kindergarten.
• B) A taxpayer currently works full- time but next year will start a two- year leave from work while pursuing an MBA degree.
• C) A taxpayer has a substantial capital loss carryforward.
• D) Installment sale treatment is mandatory.

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Definitions:

Detail Salesperson

A sales professional specializing in providing detailed information and promoting specific products or services to potential clients, often in a personalized manner.

Sales Engineer

A person who sells complex scientific and technological products or services to businesses.

Account Representative

A professional tasked with managing and maintaining the relationship between a company and its clients or customers.

Core Principles

Fundamental beliefs or values that serve as the foundation for an individual's actions or an organization's policies.