Is it actually true that stock needs to be qualified small business stock in order to be eligible for installment sale treatment? I have not seen anywhere in IRS documentation that says this or links installment sale rules with 1202. The only places I see that refer to this idea are connected to Turbo Tax, but Turbo Tax might be wrong.
I am not an expert. But it seems like Turbo Tax may be assuming that stock that is not qualified small business stock is necessarily stock traded on an exchange, but that is not always true. Installment sale treatment is generally not available for stock traded on an established exchange, but can't there be stock that is not available on an exchange that is ALSO not qualified small business stock? In that case, wouldn't installment sale treatment be available?
