Which of the following is (are) a taxable disposition of an installment obligation?
A)(1) only.
B)(1) and (2).
C)(2) and (3).
D)(1) and (3).
E)None of the above.

Question

Which of the following is (are) a taxable disposition of an installment obligation? 
A)(1) only. 
B)(1) and (2). 
C)(2) and (3). 
D)(1) and (3). 
E)None of the above.

Quizplus · Accepted Answer

1. Sale or exchange of an installment obligation results in a taxable disposition.
3. Refinancing of an installment obligation with a third party is treated as a taxable disposition of the original installment obligation.

Which of the Following Is (Are) a Taxable Disposition of an Installment