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	Tax Installment Sales   Property Taxation: Depreciation Taxation of Profit Adjusted Basis Home Mortgage Interest and Points Deduction   1031 EXCHANGES Capital Gains Tax Corporate Tax Corporation Dividend Tax Double Taxation European Union Savings Taxation Homeowners exemption Foreign Investment in Real Property Tax Act. Flat Tax Principles of Income Tax Income taxes Inheritance Tax Installment Sales Poll Tax Progressive Tax Property taxes California Propositions Purposes and Effects of Taxation Retirement Tax Sales Tax Sales leaseback Tariff Tax Credit, Exemption Equivalent and Tax Tax Rates Tax Treaty Direct and Indirect Taxation Value Added Tax Because of the inflationary appreciation of real property, owners who purchased property in pat years may hesitate to sell now because the increased value of their property makes them subject to significant taxes. If they paid their income tax in the full gain in the sale in one year, their tax could be so large that it could discourage investment in real estate. By using an installment sale, the investor can spread the tax gain over two or more years. Guidelines for reporting deferred payment sales: -The total tax to be paid in any one year may be reduced by spreading the payment amount, and thus the gain, over two or more tax years. -The seller pays tax in future years with cheaper inflated dollars. -The seller does not pay the entire tax until after receiving the entire amount of the purchase price. A provision of the prior law stating that no more than 30 percent of the sales could be received n the taxable year of the sale to qualify for installment sales treatment has been eliminated. -The installment sales method is automatic unless the taxpayer elects not to have the installment sales treatment apply. -Because higher income is taxed at higher rates (progressive tax), spreading the gain over a number of years could mean that the gain would be taxed at a lower rate.