Congress` inaction on the 2013 Tax Renewal Act and the continuation of most of 2014 have put farmers in a difficult position. In 2014, farmers had to decide whether or not to invest and rely on the adoption of the tax extension law to make the purchases. As a result of this dilemma, some farmers resorted to creative purchase agreements, where they described the purchase as “leasing”. Others entered into agreements in which the sales contract contained a “lease” or purchase option, which allowed them to benefit from the section 179 expense deduction when the tax calculation was adopted. However, in many cases, “rental” would not pass the IRS exam. The lease was in fact a conditional sales contract that would have benefited from a different tax treatment that would have been less advantageous. With the passage of the tax extension law in December 2014, the problem was solved, so that the legality of leases was never possible. The acquisition of a property through a conditional sales contract may allow a company to deduct interest from its tax return. A conditional sales contract cannot require a down payment and may also have a flexible repayment plan. The difference between a credit sale and a conditional sale is that in the event of a credit sale, the property in the merchandise is transferred to the buyer if the contract is not otherwise agreed, in the event of a conditional sale, the surrender of the property is usually postponed until an event arrives if you purchase something under a conditional sales contract.
, you own the object and the right to use it, but the property remains in the hands of the seller until the terms of the contract are met. The most common conditional sales contract involves staggered payments, with the sale only final when the payments have been made. Conditional sales contracts are often concluded for the financing of machinery and equipment as well as for various forms of real estate. A conditional sales contract is a contract involving the sale of goods. The seller, also known as a conditional sales contract, allows the buyer to take back the items described in the contract and pay for them later.