Section 751 depreciation (Sec 179) recapture and Installment sale

[Tomcpa04]

It's my understanding that items that produce 'Ordinary Income' such as Unrealized Receivables & Substantially Appreciated Inventory DO NOT qualify for Installment Sale Treatment. It is also my understanding that 751 depreciation recapture also does not qualify for Installment Sale Treatment. 

Also I believe that this Ordinary Income is reported even though the overall transaction is a loss. 

Tax Basis                  $400,000

Sale Proceeds         (300,000)

Overall Loss            (100,000)

Section 751              50,000          Recapture Ordinary Income

Capital Loss           (150,000)        Long Term Capital Loss

Am I right or wrong related to this matter??????

[sjrcpa · Accepted solution]

You are correct.