Every payment.
Every dollar of tax deferred.
A full month-by-month amortization schedule alongside the installment-sale tax math — so the seller knows exactly what they save by financing the deal instead of taking the lump sum.
| # | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $307 | $1,540 | $307,693 |
| 2 | $309 | $1,538 | $307,384 |
| 3 | $311 | $1,537 | $307,073 |
| 4 | $313 | $1,535 | $306,761 |
| 5 | $314 | $1,534 | $306,446 |
| 6 | $316 | $1,532 | $306,130 |
Installment sales, in plain English
When a seller finances the sale, the IRS lets them spread the capital gains tax over the life of the note instead of paying it all at closing. That tax deferral is often the single biggest reason a seller agrees to carry paper.
What qualifies
Any sale where at least one payment is received after the tax year of the sale. Most seller-financed real estate qualifies.
How it's calculated
Capital gain divided by total contract price. That ratio is applied to every dollar the seller receives, year after year.
The depreciation catch
Recaptured depreciation is taxed in the year of sale, not deferred. The Tax Analysis tab flags it so there are no surprises in April.
Lump sum vs installment, side by side
$385K sale, $250K capital gain, 20% long-term rate. Same property, two ways to recognize the tax.
The schedule, year by year
Annual rollups of the same $308K note — ready to drop into a partner update or attach to a tax return.
| Year | Principal Paid | Interest Paid | Year-end Balance | Cap Gains Recognized |
|---|---|---|---|---|
| 1 | $3,832 | $18,332 | $304,168 | $26,500 |
| 2 | $4,068 | $18,096 | $300,100 | $26,500 |
| 3 | $4,318 | $17,846 | $295,782 | $26,500 |
| 4 | $4,584 | $17,580 | $291,198 | $26,500 |
| 5 | $4,866 | $17,298 | $286,332 | $26,500 |
| 6 | $5,167 | $16,997 | $281,165 | $26,500 |
| 7 (balloon) | $281,165 | $16,679 | $0 | $91,000 |
| Totals | $308,000 | $123,148 | — | $250,000 |
Print-ready for the closing table
Both the monthly schedule and the annual rollup are formatted for clean printing. Hand a copy to your CPA, your seller, your seller's attorney, and the title company — everyone walks into closing with the same numbers in front of them.
Why the tax view changes deals
Tangible deferral
Show the seller a real number — "$32,000 deferred in Year 1" — instead of vague tax talk.
CPA defensible
The schedule mirrors the IRS Form 6252 worksheet so the seller's accountant can verify in five minutes.
Recapture warning
A red flag on any depreciation recapture that's due in the year of sale — no Year-1 tax surprises.
Full or yearly view
Toggle between month-by-month detail and annual summary depending on who is reading.
Note marketability
A discount-rate calculator shows the seller what the note is worth if they ever want to sell it on the secondary market.
Print and hand off
Clean printed schedules ready to staple to your offer or attach to a tax return.
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Learn more →Show your seller the tax savings
Generate the full amortization schedule and installment-sale tax savings for your next deal — the conversation that closes the seller is the one with the numbers in front of them.
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