DianeW777
Expert Alumni

Deductions & credits

The confusion is understandable. I continue to advise to change the selling price each year to accommodate the appropriate taxable gain and gross profit percentage on the installment each year, even if you need to do some calculations on your own. It not a concern the selling price increases. The bottom line is to include the correct taxable gain each year on your tax return until the sale is complete.

 

I have experienced changes to my own installment sale previously, which was also a bit confusing when the price changed after the initial sale. I'm confident you can make the necessary changes in sales price to apply the correct gross profit percentage, thereby taxing the correct gain.

 

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