Capital gains on installment sale for property held less than 1 year

[Jody Hawkins]

Hi Folks,

Question for all the keyboard accountant types.  Curious on the capital gains of installment sale for property held less than 1 year.  Are all gains taxed as ordinary income or is principal returned in later years able to be considered long term gain

Thanks,

Jody

[Bill B.]

To the best of my knowledge, and with TurboTax’s backup…

The taxability as short-term or long-term gain is based on the purchase and sales dates of the property not when you receive the proceeds.  
  . 
I’d really try to wait until a year has passed, the savings could be huge. Depending on the taxable gain you’re talking about. Rent it to them for the time difference and give them an option to purchase at the agreed upon price amount minus a portion of the rent?