What is an "open transaction" and why are they rare?

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Subject Author Date What is an "open transaction" and why are they rare? todd 08-24-2009
Posted by todd on August 24, 2009, 1:19 pm Please log in for more thread options I have read that they are like installment sales, but used when the subsequent payments are impossible to assess. But they are rare because the subsequent payment can nearly always be estimated. Seems to me that there are lots of instances where the subsequent pay would be wholly unknown. (company profits over 10 years, oil extracted over 10 years, cost of removing PCBs from lake...) Why are they rare? And in what way are they treated differently than installment sales? -- << ------------------------------------------------------- >> << 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 Open message to the moderator May 11, 2009, 3:05 pm Eligibility to open and maintain a solo 401(k) plan? November 17, 2006, 1:19 am 1099-B transaction details March 22, 2008, 10:24 am Worthless stock transaction June 3, 2006, 9:44 am open letter to misc.taxes.moderated readers July 23, 2007, 9:23 pm open letter to misc.taxes.moderated readers July 23, 2007, 9:02 pm open letter to misc.taxes.moderated readers July 23, 2007, 6:40 pm open letter to misc.taxes.moderated readers July 23, 2007, 10:03 pm open letter to misc.taxes.moderated readers July 23, 2007, 7:05 pm open letter to misc.taxes.moderated readers July 23, 2007, 10:10 pm