Sale of real estate or business by instalment or deferred payment 108-04070060

A separate procedure covers deferred sale or sale by instalment of principal home.

The sale of a property, where the purchase price is paid over an agreed period, may be treated as income depending on whether or not the sale creates a loan, or a sale agreement.

The sale of a business, where the purchase price is paid over an agreed period, may be treated as income depending on whether or not the sale creates a loan, or a sale agreement.

If the sale creates a loan, the loan is subject to deeming.

In a sale agreement, money moves from the purchaser to the seller subject to the terms of the contract. If a sale agreement:

• provides for interest to be paid on the outstanding purchase price balance, the interest payable is treated as income for social security purposes
• does not provide for interest to be paid on the outstanding purchase price balance, it may be necessary to obtain an actuarial valuation of the payments due

Income from the sale of real estate or business which is deferred or paid by instalments should be referred to a Complex Assessment Officer (CAO) for assessment.