Interest on Deferred Tax
Generally, you must pay interest on the deferred tax related to any obligation that arises during a tax year from the disposition of property under the installment method if:
You must pay interest in subsequent years if installment obligations that originally required interest to be paid are still outstanding at the close of a tax year.
The interest rules do not apply to dispositions of:
See section 453(l) for more information on the sale of timeshares and residential lots under the installment method
Form 6252 Instructions