![]() Possible reasons not to elect out, i.e., to use the installment method, include the difficulty and costs of raising cash to pay the tax in the year of the sale, being able to take advantage of an expected lower future capital gains rate, to better absorb losses from other sources or from a purchaser's default, and complications of valuing contingent consideration in the year of sale.Others include reducing an estate's valuation by the amount of the tax payment, avoiding an interest charge on deferred tax, sheltering gain by reinvesting it in a qualified opportunity zone fund, accelerating basis recovery, and absorbing loss carryovers that will expire soon. One potential reason to elect out is the possibility of higher future capital gains tax rates proposed by the current presidential administration.However, they may find it advantageous to elect out of the method and instead report the entire gain in the year of the sale. ![]() ![]() ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |