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That would bean installment sale.
An installment sale is a sale of property where you will receive at least one payment after the tax year in which the sale occurs. You are required to report gain on an installment sale under the installment method unless you "elect out" on or before the due date for filing your tax return (including extensions) for the year of the sale.
What special requirements do you mean?What are these requirements that you were told?
There are some limitations - that is correct.
We may not use the installment reporting method - but we may have an installment sale if your son doesn't have the full amount at the time of sale.
See here - page 7
Sale to a Related PersonIf you sell depreciable property to a related person and the sale is an installment sale, you may not be able to report the sale using the installment method. If you sell property to a related person and the related person disposes of the property before you receive all payments with respect to the sale, you may have to treat the amount realized by the related person as received by you when the related person disposes of the property.
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