Ark. Code R. 26-51-404 - 2(a)(2) (1997) - Installment Sales - Real Estate

Dealers who sell personal property on an installment plan must include all installment payments received during any given tax year in the dealer's gross income for such tax year. The income from installment sales cannot be reported evenly over the life of the installment contract when payments are accelerated or delayed compared to the contractual amortization. A dealer is one who is engaged in buying and selling personal property of the same type or real estate as his principal business. For treatment of gain or loss on such sales, see 1.26-51-411(e).