Installment Sale

[Bird Legs]

Things I should know but cannot remember.
A C corp. owns a lot with a building. Some fixtures; ceiling fans, etc.
The C Corp. sells the building and lot on an installment sale.
Question: can the C Corp. report this on the installment basis, or must it report the
entire sale in the year sold?
Thanks

[Bees Knees]

A C corporation can report gain under the installment sale method just the same as an individual. However, any depreciation recapture, such as the sale of equipment, fixtures, etc. that produce ordinary income cannot be reported under the installment method.

There are also ordering rules that require you to report the gain on the unrecaptured section 1250 gain subject to the 25% rate prior to long-term gain subject to the 15% rate (see TTB page 6-14, Unrecaputred Section 1250 gain).