As a follow-up to @Mike9241 post.
As noted, ALL depreciation is recaptured and taxed in the first year of the installment sale. This catches some individuals off guard, so you need to plan accordingly. In planning, you need to make sure that the down payment will cover the tax due as a result of the depreciation recapture in that initial year.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
