If you sell a capital asset and receive partial payment and a promise of the purchaser to pay the balance of the price over time, you normally will be able to report gain over the period of payments. To oversimplify, the amount reported each year is equal to the percentage of the gain equal to the percentage of the purchase price received that year. The installment sale rules are quite complicated, especially if the amount of the sale price is quite large, and professional help is a good idea when trying to comply with these rules.
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