On December 30, 2012, Maud sold land to his son, Charles, for $50,000 cash and a 7%
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On December 30, 2012, Maud sold land to his son, Charles, for $50,000 cash and a 7% installment note for $350,000, payable over 10 years. Maud's cost of the land was $150,000. In October 2014, after Charles had paid $60,000 on the principal of the note, he received an offer to sell the land for $500,000 cash. What advice can you provide Charles that will minimize the present value of the tax liability for Maud and him?
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Related Book For
South Western Federal Taxation 2014 Comprehensive Volume
ISBN: 9781285180922
37th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young
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