Property Transactions: Advanced Planning

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Gross profit % = gross profit ÷ contract price; apply to each principal payment
Not eligible: inventory/dealer property, publicly traded securities, losses
Depreciation recapture is recognized fully in the year of sale, regardless of payments received
§267: related-party losses disallowed (buyer may use them on a later sale to an unrelated party)
Related-party installment resale within 2 years accelerates the seller's gain
§1239: gain on depreciable property sold to a related party is ordinary
§1031: real property only; 45/180 days; use a qualified intermediary