Other than for dispositions of installment obligations at death and certain tax-free exchanges, the privilege of income deferral by installment reporting is generally personal to the seller. Because of the potential for triggering income tax liability, all transactions involving installment obligations should be approached with care including transfer to revocable inter vivos trusts.
Harl, Neil E.
"Disposition of Installment Obligations,"
Agricultural Law Digest: Vol. 14
, Article 1.
Available at: https://lib.dr.iastate.edu/aglawdigest/vol14/iss24/1