What type of sale allows you to receive at least one payment after the tax year of the sale?

An installment sale is a transaction where the seller allows the buyer to make payments over time rather than requiring full payment upfront. This type of sale is particularly significant for tax purposes because it allows the seller to recognize income over the term of the installment payments, rather than all at once in the year of sale.

In an installment sale, if at least one payment is received after the end of the tax year in which the sale occurred, it can spread the tax liability over multiple years. This can result in a lower tax rate on some portion of the profit if the seller's income fluctuates from year to year.

In contrast, a cash sale requires full payment at the time of the transaction. A lease sale generally refers to renting or leasing property rather than selling it outright, and a trade sale involves exchanging goods or services rather than a typical sale with monetary payments. In these cases, there is no allowance for receiving payments across multiple tax years, which distinguishes them from an installment sale scenario.