Uderwriting for commercial lending, so need direct reference from IRS (searching myself in meantime). Is it true that one can defer capital gains on property sold on land contract? He claims that “Under Capital Gains the IRS code Sec. 1222; Reg 1.1222-1 specifies “In the case of real estate, a sale or exchange occurs on the earlier of the date of conveyance or the date when all of the burden and benefits of ownership pass to the purchaser. Obviously, the purchaser does not have all of the burdens or rights of ownership, i.e., they cannot sell the real estate, drop insurance, burn it down, not pay the taxes, not pay the monthly payments (without ownership reverting to me) and dozens of other factors. Purchaser could simply walk away and I’d have them back! Of course the conveyance of the deed won’t happen until the last payment is made in full.” He refers to “like like” exchange as other loophole and why pay cap gains if you don’t have to. Please include link or professional reference.