Installment sale vs dealer status, in questions
Lesson 2 of 6 · Keep what you made
1 · Learn the move · Cognitive verifier
A seller who carries paper wants to know whether the gain can be reported as the payments come in. The model can produce a confident answer to that in one sentence, and it depends entirely on facts about you that it does not have. The underlying question is how your land is characterised: held as an investment, or held for sale in the ordinary course of a business. That turns on how many parcels you sold, how long you held them, what you did to them, how you marketed them and how your books treat them. The cognitive verifier makes the model break the big question into those smaller ones first, answer each only from the records you pasted, and mark the rest [NEEDS: ...]. It stops there. The characterisation, and whether installment reporting is available to you at all, is the CPA's answer, and the output is the fact pattern that lets the CPA give it quickly.
My question is whether I can report my seller-financed sales as installment sales. Do not answer it. First list the sub-questions a CPA would need answered to decide how my land is characterised and whether installment reporting is available. Answer each from my sales log only, citing rows. Unanswered ones read [NEEDS: ...]. Then stop.
2 · Your turn. You write the prompt
You bought and resold eleven parcels last year and carried paper on three. A forum thread says land flippers are 'dealers' and cannot spread the gain, and another says they can. You have a sales log with purchase and sale dates, prices and notes on what you did to each parcel. Write the prompt that turns the question into the facts your CPA needs.
Write the prompt for this scenario as given, or swap in a real one from your own work. The score works the same either way.
Remember: the AI sees only your prompt, not this page. If the situation isn't in your prompt, it doesn't exist.
Optional. These shape the output when you run your prompt below, not your score.