Posted: | December 9, 2024 01:57 PM |
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From: | Representative Keith J. Greiner |
To: | All House members |
Subject: | Aligning the State Tax Code with Federal Law on Installment Sales |
Federal installment sales refer to the sale of property where at least one payment is received after the tax year of the sale. The IRS allows taxpayers to defer a portion of the gain on the sale of an investment property with an installment sale agreement. However, the PA Department of Revenue does not allow for similar agreements to be entered. Revenue requires the seller to make a payment on the full amount of the sale in a lump sum and does not allow the seller to spread the tax liability over the duration of the payments by the purchaser. My legislation would require the Department to conform with the Federal Tax Code and allow a seller to spread out their tax liability over the duration of their payments. Please join me in sponsoring this important legislation. |