The Installment Method Applies Where a Payment Will Be Received

question 52

Multiple Choice

The installment method applies where a payment will be received after the tax year of the sale:

• A) By an investor who sold real estate at a gain.
• B) By an investor who sold real estate at a loss.
• C) By an appliance dealer who sold inventory at a gain.
• D) By an investor who sold IBM Corporation common stock at a gain.
• E) None of the above.

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Definitions:

Real Estate Agent

A licensed professional who arranges real estate sales, purchases, and rentals for clients.

Market Residential Real Estate

The sector of the real estate market focused on buying, selling, and renting properties for residential use, including houses, apartments, and condominiums.

Real Estate Agent

A professional licensed to negotiate and arrange the buying, selling, leasing, or renting of properties on behalf of their clients.

Market Residential Real Estate

The segment of the real estate market focused on buying, selling, and renting properties used as homes.