Posted by Dave T on October 24, 2004 at 13:59:22:
I am have not read the article you reference, but I am sure Mr. Bronchick is referring to sales that are treated as dealer dispositions.
In a dealer disposition all of the profit (whether received or not) from the sale is taxed as ordinary income in the year of the sale. The property is not eligible to participate in a 1031 exchange, depreciation expense not allowed, nor is installment sale tax treatment allowed.
On the flip side, IF the property you are selling is investment property rather than dealer realty, THEN for tax purposes, your sale on a Contract For Deed is treated as an installment sale.
Does this help?