I'd like someone to confirm my understanding of the treatment of a gain on a land sale. The offer is a large down payment with owner financing the rest. What I'm trying to do is determine the amount of the contract I'm going to carry in order to not go over certain income limits which will affect my insurance subsidy (the buyer is open to adjusting the carry amount of the installment portion). Basically, I need to keep my capital gains around 10K per year. Below are the details that I've calculated using the IRS Publication 537 worksheet. What I hope is to have someone confirm that the gain on the amount of cash I'd receive for the first year (the remainder would be paid in installments) is calculated correctly. Thanks much for your help!!