A transaction in which the final selling price or payment period of an installment sale is not established by the end of the tax year in which the sale takes place. Special tax rules become applicable when the total selling price may be subject to adjustment based on a computation of future profits. The same rules may apply if sale occurs without a fixed schedule of payments.
Related information about contingent payment sale:
- Contingent Payment Sale Definition | Investopedia
For example, if you sell your business and part of the price includes a share of future revenues or profits, this would be a contingent payment sale.
- Publication 537 (2011), Installment Sales
A contingent payment sale is one in which the total selling price cannot be ... For rules on using the installment method for a contingent payment sale, see ...
- What is contingent payment sale? definition and meaning
Definition of contingent payment sale: A transaction in which the final selling price or payment period of an installment sale is not established by the end of the ...
- Installment Sales Tax Primer - Morse, Barnes-Brown & Pendleton
Under Regulations Section 15A.453-1(c)(1), a contingent payment sale is defined as a ... contingent payment sale does not include any transaction in which the ...
- Earn-out Sale Gets a Speedy Basis Recovery - Accounting - CFO.com
Jan 18, 2011 ... Based on the tax code's Regulation Section 15a.453-1(c)(1), a contingent payment sale is defined as a sale or other disposition of property in ...
- Contingent payment sales: Definition from Answers.com
Contingent Payment Sale A type of installment sale in which either the price or payment period for the asset has not been fixed.
- Contemplating contingent consideration — A look at the ... - Deloitte
occurred is a contingent payment sale and subject to the installment sales method of reporting gain — unless the taxpayer specifically elects to not apply the ...
- TIR 04-28: Changes to Massachusetts Installment Sale Elections
In the case of a contingent payment sale, (i.e., where the total gain for the transaction is uncertain by the close of the tax year in which the sale occurs), taxpayers ...