Father sells property he has basis of $10,000 and a FMV of $20,000. He receives a $20,000 note, $10,000 payable in year 2 and $10,000 payable in year 3. What if Father died in year 2 (before Father received any payments). Pursuant to his Father's will, son receives the note and the $10,000 payments in year 2 and then another $10,000 in year 3. How much income does Father have with respect to the $20,000 note on his final return in Year 2?

Answer rating: 100% (QA)

Fathers Income on the 20000 Note in Year 2 Since the father doesnt receive any payments from the not... View the full answer