Buying On Contract Tax Question

[Evan Manship]

All,

My uncle was recently thinking of selling one of his properties in a thriving market in Indianapolis. Instead of taking the normal route, I convinced him to sell it to me on contract.  We are still working out terms.

A question I have is this:

If he is to sell it to me on contract, how to those taxes work for him? Is the income he receives from my payment taxable a normal income? Do I claim the house on my taxes though I don't have the deed in my name yet?