Installment Sale Taxes

[Ryan Lowe]

Question for the group. I am looking to purchase a portfolio of rural vacant land plots from a real estate investor. These properties were sold on installment terms (typically 48-60 months) and he has collected partial income on them. I will be buying at a discount. How will I be taxed? I will be receiving the installment income on a monthly basis through the remainder of the term? If I structure the purchase with him so that I do not collect income for 12 months, then he pays me for months 1-13 in month 13, will that payment and all thereafter be subject to capital gains vs ordinary income?