What does "disposition" mean?

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Subject Author Date What does "disposition" mean? Kevin 05-19-2009  Re: What does "disposition" mean? Katie 05-19-2009   Re: What does "disposition" mean? Steve Pope 05-19-2009
Posted by Kevin on May 19, 2009, 4:24 pm Please log in for more thread options In the sentence: '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.' What precisely does "disposition" mean? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Katie on May 19, 2009, 5:15 pm Please log in for more thread options > In the sentence: > > '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.' > > What precisely does "disposition" mean? > To dispose of something is to get rid of it <G>. You give up your rights, title, etc. to the property, usually in exchange for something. A gift would be a disposition, but of course would not be an installment sale because nothing would be received in exchange. Katie in San Diego -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Steve Pope on May 19, 2009, 8:30 pm Please log in for more thread options >To dispose of something is to get rid of it <G>. You give up your >rights, title, etc. to the property, usually in exchange for >something. >A gift would be a disposition, but of course would not be an >installment sale because nothing would be received in exchange. And for real property, a long-term lease option with a term of at least 30 years is a disposition, per revenue rulings 60-4 and 72-85. (Unless there have been some code changes in the subsequent decades reversing this...) Steve -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted recapture of section 179 deduction on disposition January 24, 2007, 2:15 am Disposition Of Lehman Brothers Shares November 12, 2008, 12:14 am