Installment Sales IRS Code - 26 USC 453
IRS code section 453 allows for the tax-deferral of income using an installment sale.
Installment Sales Case Law
There is positive case law allowing for the substitution of an obligor in an installment sale.
Installment Sales IRS Form 6252 (pdf)
IRS Form 6252 is filed by the seller in each year that an installment payment is received.
Installment Sales IRS Pub. 537 (pdf)
IRS Publication 537 discusses the general rules that apply to using the installment method.
Installment Sales IRS Revenue Ruling 75-457
Revenue Ruling 75-457 found that the substitution of the obligors in an installment obligation did not create a disposition or taxable event under IRC 453(d).
Installment Sales IRS Revenue Ruling 82 - 122
Revenue Ruling 82-122 ruled that the increase in the interest rate on an installment obligation coupled with a new obligor did not create a disposition or taxable event under IRC 453.Rev.Rul.75-457 amplified.