installment method
Defined in 2 dictionaries — Case Law, U.S. Code
Definitions from Case Law
From 304 U.S. 191 - Pacific Nat Co v. Welch · 1938Most cited · 332 citing opinions
the taxpayer may return in any taxable year that proportion of the installment payments actually received in that year which the gross profit realized or to be realized when payment is completed bears to total contract price
United States Code
26 U.S.C. § 453 — for purposes of this section
For purposes of this section, the term “installment method” means a method under which the income recognized for any taxable year from a disposition is that proportion of the payments received in that year which the gross profit (realized or to be realized when payment is completed) bears to the total contract price.