No Installment Sale with Note Payable on Demand

One business owner sold the company to another with what he thought would be an installment sale. This would have allowed him to spread the gain over the years in which proceeds were received. The problem: The note for future payments was payable on demand. According to a federal district court, the note did not have a payment date, so it was treated “on demand” and installment sale treatment did not apply. #IdeaoftheDay

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