PUBLIC LAW 96-471—OCT. 19, 1980
Public Law 96-471 96th Congress
94 STAT. 2247
An Act
To amend the Internal Revenue Code of 1954 to revise the rules relating to certain installment sales.
Oct. 19, 1980 [H.R. 6883]
Be it enacted by the Senate and House of Representatives of the Installment United States of America in Congress assembled, SECTION 1. SHORT TITLE; AMENDMENT OF 1954 CODE.
Sales Revision Act of 1980.
(a) SHORT TITLE.—This Act may be cited as the "Installment Sales 26 USC i note. Revision Act of 1980". (b) AMENDMENT OF 1954 CODE.—Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1954. 26 USC i. SEC. 2. INSTALLMENT SALES RULES.
(a) GENERAL RULE.—Subpart B of part II of subchapter E of chapter 1 is amended by striking out section 453 and inserting in lieu thereof the following new sections: "SEC. 453. INSTALLMENT METHOD.
"(a) GENERAL RULE.—Except as otherwise provided in this section, income from an installment sale shall be taken into account for purposes of this title under the installment method. "(b) INSTALLMENT SALE DEFINED.—For purposes of this section— "(1) IN GENERAL.—The term 'installment sale' means a disposition of property where at least 1 payment is to be received after the close of the taxable year in which the disposition occurs. "(2) EXCEPTIONS.—The term 'installment sale' does not include— "(A) DEALER DISPOSITION OF PERSONAL PROPERTY.—A disposition of personal property on the installment plan by a person who regularly sells or otherwise disposes of personal property on the installment plan. "(B) INVENTORIES OF PERSONAL PROPERTY.—A disposition of personal property of a kind which is required to be included in the inventory of the taxpayer if on hand at the close of the taxable year. "(c) INSTALLMENT METHOD DEFINED.—For purposes of this section, the term 'installment method' means a method under which the income recognized for any taxable year from a disposition is that proportion of the payments received in that year which the gross profit (realized or to be realized when payment is completed) bears to the total contract price. "(d) ELECTION OUT.—
"(1) IN GENERAL.—Subsection (a) shall not apply to any disposition if the taxpayer elects to have subsection (a) not apply to such disposition.
26 USC 453.
"Installment sale."
"Installment method."
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