In the sentence:
'The term "installment sale" means a disposition of property where at least
1 payment is to be received after the close of the taxable year in which the disposition occurs.'What precisely does "disposition" mean?
To dispose of something is to get rid of it . You give up your rights, title, etc. to the property, usually in exchange for something.
A gift would be a disposition, but of course would not be an installment sale because nothing would be received in exchange.
Katie in San Diego
And for real property, a long-term lease option with a term of at least 30 years is a disposition, per revenue rulings 60-4 and 72-85.
(Unless there have been some code changes in the subsequent decades reversing this...)
Steve
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