Installment sale tax treatment question
I've got a property that I've owned a long time and it's been depreciated down to practically nothing (condo, so no land). I'm selling and I have a buyer if I will hold the paper. Say I get 20%dp, interest only and a balloon in 5yrs, what are my tax consequences on an installment? I gather the 20% is taxed this year and the interest each year is ordinary income. Would the 20% down be taxed as a recapture of depreciation? Will they impute other gains during the 5yr interest only period?
I'd rather do a 1031, can I do this in conjunction with an installment sale? We have alot of income this year. Thanks for any clarification. I've never sold on installment.