Installment Loss

[Corduroy Frog]

A Client sold his partnership interest in 2024, on a 10-year installment.

After calculating his basis, he sold at a loss.

He is not obligated to report using the installment method.  However, he would be better spreading this loss over a period of years rather than all at once.

Question:  Can he report this loss on the installment method, or does he have to show the loss all in the year it occurred?

Thanks in advance for your comments.

[Patrick Michael]

You can not use the installment method if there is a loss.  See Pub 537.

[Corduroy Frog]

Thank you...not enough research done on my part.