For decades, taxpayers have tried various strategies for selling land, qualifying the transaction for installment reporting of the gain with the land then resold to a third party for cash. Often, the initial transaction involved related parties with the resale typically made to a developer who paid cash and received title to the property. The result of the two stage transaction, if successful, was to have the initial buyer in possession of the full purchase price with the initial buyer making payments to the initial seller who reports the gain over the period of the installment obligation.
"Resale of Land Purchased Under Installment Obligation,"
Agricultural Law Digest: Vol. 3
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol3/iss20/1