You can turn shredded wheat and cat waste into a security instrument if you can pull off the following :
(1) find collateral and (2) cash flow .
So lenders A.) take home up from and B.) cancel the note and C.) convert it into 10 installments
Now go to operative law :
• Gain or loss usually must be recognized upon any sale exchange or other disposition of property. IRC § 1001.
• IRC § 453 does not exclude gain from income, but in some situations permits a taxpayer to recognize gain from the disposition of property when the taxpayer receives cash or property other than the buyer’s promise to pay in the future.