The food business transaction would be through what is known as an installment sale.

The installment sale allows buyers to obtain an asset such as real estate without bank financing.

The law, however, would prohibit such deferrals if the installment sale were set up specifically to pledge the notes.

For real estate, consider tailoring a transaction as an installment sale, with some or all of the proceeds to be paid next year.

When an installment sale is structured properly, a note holder can borrow against the promised sum from a bank.

Installment Sale - Defer capital gains by taking payments from a buyer over a period of years.

Under the previous installment sale rules, the seller accepts a note in lieu of cash and only owes the tax as payments are received.

The Brooks Brothers sale borrowed an old idea that had fallen out of favor: the installment sale.

As of Jan. 1, Congress virtually eliminated the installment sale method of computing tax liability that the company had counted on using.

A structured sale is a special type of installment sale pursuant to the Internal Revenue Code.

The term "installment sale" does not include, however, a "dealer disposition" (as defined in the statute) or, generally, a sale of inventory.

Congress passed a tax law this year with a section that specifically removed the benefits of an installment sale because of perceived abuses of the rule.

Installment sale (USA)

Gain on sale of property other than inventory may be recognized at the time of sale or over the period in which installment sale payments are received.

If a taxpayer realizes income (e.g., gain) from an installment sale, the income generally may be reported by the taxpayer under the "installment method."

Installment Sale Program, $104.9 million of certificates of participation for the City of Atlanta, Georgia Detention Center.

A further option, said Richard Sprayregen, a partner in the Los Angeles office of the accounting firm Kenneth Leventhal & Company, might be an installment sale.

The Structured Sale (Ensured Installment Sale) has generally considered to be a much superior tax deferral method to the PAT.

Structured sale annuity (aka Ensured Installment Sale) - Defer and reduce capital gains tax while gaining safety and a stream of guaranteed income.

If the taxpayer disposes of property in an installment sale, he or she reports a portion of the gain at the time of receipt of each installment payment.

The advantage of an installment sale is that the capital gains enjoyed by the shareholders would not be taxed at once, but over the period of time in which the installments were made.

These benefits in many cases will enable a PAT to provide superior results as compared to a charitable remainder trust (CRT), installment sale, or tax-deferred 1031 exchange.

The Nov. 30 agreement between Pepsico and General Cinema required quick action because it was organized as an installment sale whereby Pepsi would pay with 20-year installment notes.

He said the company knew Pepsi wanted to expand and "all of a sudden we were presented with an offer and an opportunity to do it as an installment sale and defer the taxes."

One final note: The new tax law retains the installment sale treatment for tax purposes on most residential seller-financings, since they are usually casual sales, rather than transactions made in the normal course of business.