TaxConnections Tax Professionals – Can You Help With This Question Of The Week?
Is future income from a promissory note all taxable in the year the note was issued?
When we sold our business we signed a promissory note with the buyers for a portion of the purchase price with a 15 year payback at 6% interest. Our accountant told us that we must pay taxes on the full amount of the note even though we will receive the income over 15 years. Seems unfair to have taxation BEFORE compensation. Is this right?
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