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Tax

Installment Sale §453

Spread capital gains over years to stay in lower brackets.

Overview

Seller carries a note; capital gain recognized proportionally as principal is received. Smooths income, keeps you under NIIT/QBI thresholds, and earns interest on the deferred tax.

Best fit
Business sellersReal estate exitsLarge one-time gains
Estimated impact
5–15% effective rate reduction

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