Linda is selling land she has owned for many years. The land cost $80,000 and will sell
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Linda is selling land she has owned for many years. The land cost $80,000 and will sell for $200,000. The buyer has offered to pay $100,000 down and pay the balance next year plus interest at 8%. Assume that Linda’s after tax rate of return on investments is 10%. Would she be better off receiving the installment payments or receiving cash? Assume her ordinary income is taxed at 24% and that long-term capital gains are taxed at 15%.
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Related Book For
Pearsons Federal Taxation 2023 Comprehensive
ISBN: 9780137840656
36th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse
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