Installment sale of small business stock not publicly traded

Forum|Forum|3 years ago
March 20, 2023
3 replies
19 views

Can you use the installment sale method to report sale of small business stock that is not publicly traded? Stock of a small corporation. It looks like you can but what do you guys think. Thank you.

ProSeries Professional

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Best answer by IRonMaN

Us guys say yes. Well, me, myself, and I say yes so are there enough votes there to sway your decision?

IRonMaNAnswer

Level 15

Us guys say yes. Well, me, myself, and I say yes so are there enough votes there to sway your decision?

Slava Ukraini!

IRonMaN

Level 15

Just for the record though, I didn't check pub 17 or any Intuit tutorials before providing that answer 😀

Slava Ukraini!

PATAXAuthor

Level 12

Thanks Iron Man. From what I read it appears that sales that are NOT reported under the installment method are the sale of stock or Securities traded on an established Securities Market. Therefore that leads me to believe that privately held stock that is not publicly traded is eligible for installment sale treatment. The stock is not qualified small business stock as it was originally issued before August 10th 1993.

dkh

Level 15

Yes vote from me too. I've done an SCorp stock sale on installment sale method.

PATAXAuthor

Level 12

@dkh @IRonMaN Thanks again for your help. Was just discussing possible sale of a client's business, and found this from 2023. Many small businesses are not too thrilled when they find out how much tax they have to pay when they sell their businesses, but it is what it is. Thanks.

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