Contingent Payment Sale

Contingent Payment Sale
A type of installment sale in which either the price or payment period for the asset has not been fixed. Contingent payment sales entail a special set of rules that vary according to whether the price or the schedule is the fixed amount. For example, if you sell your business and part of the price includes a share of future revenues or profits, this would be a contingent payment sale.

Because the final amounts in these transactions are uncertain, it is difficult to calculate tax liability for any capital gains. The methods for calculating tax liability for contingent payment sales transactions include determining a maximum selling price or, alternatively, determining a fixed period during which payments will be made by the buyer to the seller.


Investment dictionary. . 2012.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Contingent payment sales — In business dealings, transactions often occur that include variables based on future events that can be difficult to ascertain (for example, a company may sell in an amount stock along with a percentage of that company’s net profits.) As these… …   Wikipedia

  • sale — n 1 a: the transfer of title to property from one party to another for a price; also: the contract of such a transaction see also short 1 2 compare barter, donation …   Law dictionary

  • SALE — (Heb. מְכִירָה, mekhirah). Sale may be defined as the permanent transfer for consideration of existing legal rights from one person to another. The consideration may be in money or in kind. By extension the term sale is also used to denote a… …   Encyclopedia of Judaism

  • Contingent commissions — is a term used in the American insurance industry for any kind of commission which is contingent upon some event occurring (instead of a commission paid on the sale itself). In the UK this form of payment is known as Overriders. Theoretically,… …   Wikipedia

  • Burnet v. Logan — Infobox SCOTUS case Litigants = Burnet v. Logan ArgueDate = April 29 ArgueYear = 1931 DecideDate = May 18 DecideYear = 1931 FullName = Burnet, Commisioner of Internal Revenue, v. Logan USVol = 283 USPage = 404 Citation = 51 S.Ct. 550, 75 L.Ed.… …   Wikipedia

  • Russia — /rush euh/, n. 1. Also called Russian Empire. Russian, Rossiya. a former empire in E Europe and N and W Asia: overthrown by the Russian Revolution 1917. Cap.: St. Petersburg (1703 1917). 2. See Union of Soviet Socialist Republics. 3. See Russian… …   Universalium

  • Dodd–Frank Wall Street Reform and Consumer Protection Act — Full title An Act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end too big to fail , to protect the American taxpayer by ending bailouts, to protect consumers… …   Wikipedia

  • France — /frans, frahns/; Fr. /frddahonns/, n. 1. Anatole /ann nann tawl /, (Jacques Anatole Thibault), 1844 1924, French novelist and essayist: Nobel prize 1921. 2. a republic in W Europe. 58,470,421; 212,736 sq. mi. (550,985 sq. km). Cap.: Paris. 3.… …   Universalium

  • Shared appreciation mortgage — A shared appreciation mortgage or SAM is a mortgage in which the lender agrees as part of the loan to accept some or all payment in the form of a share of the increase in value (the appreciation) of the property. In the US A shared appreciation… …   Wikipedia

  • cañada — /keuhn yah deuh, yad euh/, n. Chiefly Western U.S. 1. a dry riverbed. 2. a small, deep canyon. [1840 50; < Sp, equiv. to cañ(a) CANE + ada n. suffix] * * * Canada Introduction Canada Background: A land of vast distances and rich natural resources …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”