We have a client who is an Oregon resident (formerly a California resident), who has rental real estate property in Oregon. This property was part of a 1031 exchange in 2014. The gain on the property was $295k, and the California “claw-back” portion was $150k. This client is considering an installment sale on this property. Our question is how will California tax the installment sale income? Will it be taxed as the income is received, or in full at the time of sale?