Investors & landlords

an option available to you is to report the gain on the installment method since this is not inventory. you would complete form 6252 in the year of sale. this way only a % of the gain is reported each year. basically principal collected each year divided by the total principal to be received times the gain. you can not use this if there is a loss.

also, you much either charge interest or treat part of the proceeds as interest.