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Selling Real Estate on the Installment Basis: Key Tax Benefits and Traps to Know

ARTICLE | September 14, 2026

Authored by Vasquez + Company

If you own real estate that is likely to generate a significant capital gain when sold, an installment sale may be one of the most effective tax planning strategies available to you. By structuring payments across at least two tax years, you can take advantage of favorable long-term capital gains rates, defer a portion of your tax liability, and potentially benefit from lower tax rates in future years. But installment sales come with complexity. From depreciation recapture rules to related-party restrictions, there are several tax traps that can catch sellers off guard. Understanding the rules before you negotiate can make a meaningful difference in your after-tax outcome.

Read the full article here.

 

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose. 

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