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California 540 In 2015, Wilson sold a rental house for $210,000. At that time, an installment agreement for the sale was drawn up to cover
California 540
In 2015, Wilson sold a rental house for $210,000. At that time, an installment agreement for the sale was drawn up to cover a period of 7 years. He has received installment payments every year since. During the 2019 tax year, he received an installment payment of $40,000, $10,000 of which was the interest portion. If the buyer chooses the Total Sales Price Method, how much should the buyer withhold on the principal portion of the installment payment?
a) $7,000 b) $1,000 c) $3,690 d) $1,333
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