Chen C. and Victoria R. Wang, et al. - Page 17

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               5(...continued)                                                        
                              (A) Personal property.--Any disposition                 
                         of personal property by a person who                         
                         regularly sells or otherwise disposes of                     
                         personal property of the same type on the                    
                         installment plan.                                            
                              (B) Real property.--Any disposition of                  
                         real property which is held by the taxpayer                  
                         for sale to customers in the ordinary course                 
                         of the taxpayer's trade or business.                         
                         (2)   Exceptions.--The term "dealer                          
                    disposition" does not include--                                   
                              (A) Farm property.--The disposition on                  
                         the installment plan of any property used or                 
                         produced in the trade or business of farming                 
                         (within the meaning of section 2032A(e)(4) or                
                         (5)).                                                        
                              (B) Timeshares and residential lots.--                  
                                   (i) In general.--Any dispositions                  
                              described in clause (ii) on the                         
                              installment plan if the taxpayer elects                 
                              to have paragraph (3) apply to any                      
                              installment obligations which arise from                
                              such dispositions. An election under                    
                              this paragraph shall not apply with                     
                              respect to an installment obligation                    
                              which is guaranteed by any person other                 
                              than an individual.                                     
                                   (ii) Dispositions to which                         
                              subparagraph applies.--A disposition is                 
                              described in this clause if it is a                     
                              disposition in the ordinary course of                   
                              the taxpayer's trade or business to an                  
                              individual of--                                         
                                        (I) a timeshare right to use                  
                                   or a timeshare ownership interest                  
                                   in residential real property for                   
                                   not more than 6 weeks per year, or                 
                                   a right to use specified                           
                                   campgrounds for recreational                       
                                   purposes, or                                       
                                                             (continued...)           




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