Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

Installment Sale Tax Benefit

20 Feb 2026 · 1 min

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0:45

In this instructional segment, the speaker explains the tax advantage of using an installment sale for sellers. He contrasts a traditional cash sale, which triggers an immediate, large tax liability because the entire gain is recognized in the year of sale, with an installment sale where the seller can defer tax by receiving payments over time. The speaker highlights that this deferral is a key selling point to persuade sellers to agree to carry a note, emphasizing that many sellers may not realize this benefit. He notes that the discussion is for educational purposes and not specific tax advice.

Chapters

All right, so let's take a look at the installment sale tax benefit for the seller. And then in a couple slides, we're going to come back to something I just said and show you how it works. Because this is usually one of the key selling points for the seller or one of the, and they might not realize it, but it's one of the ways you can get them to agree to carry the note. So let's stage here. Traditional cash sale creates a tax time bomb for them. The seller gets hit with a huge tax bill in that year of sale because the entire gain is realized immediately. And what they don't realize, and this is not tax advice, that's what we're going to do the whole, you know, everyone should both buy or sell.