The criteria for using the installment sales technique to report a sale are:
- You have a gain on the sale
- You are being paid in installments that extend past the year of sale
There's no requirement that the note receivable even be secured by the property in the first place, from the standpoint of being allowed to use the installment method. The fact that your secured note receivable will now be secured by another property is irrelevant.
Tom Young
