What INSTALLMENT METHOD means: A method of accounting enabling a taxpayer to spread the recognition of gain on the sale of property over the payment period. Under this procedure, the seller computes the gross profit percent from the sale (that is, the gain divided by the contract price) and applies it to each payment received to arrive at the amount of the gain to be recognized.
- Definition Investment Tax Credit:
- Dictionary A provision under which tax credits are allowed for rehabilitating a building or investing in energy property for business purposes installment method definition.
- Definition Identifying Numbers:
- Dictionary dependents must have identifying numbers. Individuals, with rare exceptions, use their social security numbers. Businesses, estates, trusts, partnerships, and payers of dividends and interest, use installment method explain.
- Definition Income Averaging:
- Dictionary farmers may sometimes reduce tax liability by computing their income tax as if their current farm income had been spread evenly over the preceding three years. The term also is sometimes used when installment method what is.
- Definition Independent Contractor:
- Dictionary contracts to do work according to his own methods and who is not subject to control except as to the results of such work. An employee, by contrast, is subject to the control of the employer as to installment method meaning.
How works Installment Method meaning in Tax definitions I .
