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.