Installment payment

Definition and stakes

United States Tax Court,  Est v. C.I.R. Docket Nos. 8043-80… (1986|noyearcat)

“ Each annual installment shall consist of interest at the rate of nine percent (9%) on such sum as shall represent the principal value of licenses disposed of or directly operated by WELBEHAGEN from time to time. No interest shall be paid on any sum in excess of such principal value. WELBEHAGEN may prepay all principal at any time at its own convenience and without the consent of PMSA. So much of any payment as shall not be required for interest shall be attributed to principal. ”
Source: Wikisource

Pierce Butler,  Pacific National Company v. Welch…

“ Regulations 74 permit the vendor to return income from installment sales on the straight accrual or cash receipts basis; when so reported the sales are treated as deferred payment sales not on the installment plan. Article 353. In ascertaining the amount of profit or loss from that class of sales, the obligations of the purchaser to the vendor are taken at their fair market value ”
Source: Wikisource

United States House of Representatives,  House Report 102-873 Part 2 (1992)

“ If the digital audio recording device is not part of a physically integrated unit and substantially similar devices have not been distributed separately at any time during the preceding 4 quarters, the royalty payment shall be based on a constructed price reflecting the proportional value of such device to the combination as a whole. ”
Source: Wikisource

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