Marvin is selling his business as a total entity. The buyer has offered a very large down payment, but marvin would prefer a lower down payment and a longer repayment period. Why?

The answer is "To reduce Marvin's annual tax liability on the profit of the sale."

A tax liability is the aggregate sum of tax debt owed by an individual, partnership or other element to an exhausting expert like the Internal Revenue Service (IRS). It is the aggregate sum of assessment you're in charge of paying to the taxman. Expense liabilities are caused because of procuring pay, a gain on the offer of a benefit or other assessable occasions.

A tax liability is the measure of tax collection that a business or an individual brings about in light of current assessment laws. Assessments are forced by an assortment of saddling experts, including bureaucratic, state and neighborhood governments.