What property isn't eligible for installment sales?

If property isn't eligible for the installment sale method, the entire gain from the sale needs to be recognized in the year it is sold. Here's a list of property not eligible for the installment sale election:

• Marketable securities such as stocks that can be sold on the stock market.
• Depreciable property sold to a related party unless you can show to the IRS that the purpose of the sale isn't to avoid income taxes.
• Most inventory that you sell as part of your trade or business.