Seller Financing

[Kimberly Rushing]

Many people proclaim the wonders of seller financing, and claim that one of the primary benefits to the seller is the "minimized tax burden." Can someone please walk me through exactly how this works? I imagine the nature of the sale (installment) allows the seller to report their capital gain in increments instead of a lump sum, thereby allowing them to remain in a lower tax bracket. Is this accurate and is there more to the story?