Installment sale two-year limit - Posted by Mike Reed

import · April 21, 2018, 1:18pm

Posted by Bill Jacobsen on July 20, 2007 at 08:20:25:

You need to structure this with the advice of a CPA. It is my understanding that generally, you have to report as income the gain including any gain your son may have. It is also my understanding that if you structure the terms correctly so that it is not considered a tax avoidance scheme by the IRS it can stand as an installment sale. One of the criteria is that the terms be as long or longer than the original contract.

Again, contact a CPA.

Good luck,

Bill

import · April 21, 2018, 5:40pm

Installment sale two-year limit - Posted by Mike Reed

Posted by Mike Reed on July 16, 2007 at 20:33:15:

I sold a condo to my son using an installment sale ten months ago. He is now selling the condo to purchase a single family home, and I have agreed to transfer the full amount due, with the same terms, to the new property. Since this violates the two-year installment sale to a relative rule, need I report the total gain this year, or can I carry the installment sale into the new property?