What tax benefit may a purchaser receive in an installment sale of property?

In the context of an installment sale of property, the tax benefit the purchaser may receive is related to the structure of the sale itself.

In an installment sale, the buyer pays for the property over time in a series of payments, which may include both principal and interest. The buyer can deduct the interest paid on the loan if it meets the requirements under tax laws, which helps reduce taxable income for that tax year. This makes option B regarding a tax deduction for interest paid to the buyer accurate and relevant.

The other options do not represent direct benefits for the buyer in an installment sale scenario. For instance, property depreciation is typically a benefit for the owner of the property itself, rather than the purchaser in a transaction context. A gain on the sale of property refers to the seller's perspective, not the purchaser's tax situation. Finally, exclusions from capital gains tax usually apply to sellers who meet certain criteria, making it not applicable to the buyer in this case. Therefore, focusing on the benefit of interest deduction accurately highlights the advantageous aspect of installment sales for the buyer.