Selling Machinery on Payments

Why spreading the payments doesn't spread the tax

Course #: FN-059
Write your awesome label here.

Field Note Description

Selling your machinery line on payments — a contract for deed, an installment deal — feels like it should spread the tax the way it spreads the money. For written-off equipment, it doesn't: the write-off piece of the bill lands in the year of the sale, however the checks are scheduled. This Field Note explains why, what a payment sale can and can't do for machinery, and what to settle with your tax preparer before anything gets signed.