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Can I elect to pay capital gain tax in Year 1 if I sell my business on an installment sale?

Level 8

If I decide to sell my business in 2020 and have a $200,000 capital gain, can I choose (elect) for tax purposes to pay tax on the entire $200,000 in 2020 even though I will be paid for the business over a 7 year period? 

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1 Comment 1
Level 15

Yes, you can elect out of installment sale. 

A related concern may be cost of Medicare premium, if client is entering retirement. 

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