Skyhighballoon(MO) - 3/29/2024 20:26
I bought my family farm from my parents in late 1995 as an installment sale. My parents basis was very low so a pretty big % gain which was going to be used to buy an house in town as my father’s dementia was progressing. There were only two installments - last business day of 1995 and first business day of 1996. But our real estate/tax lawyer set it up that way to knock down the tax brackets for my parents by splitting it over two years. The bank I used for the mortgage just funded me the 2nd installment at closing which I deposited and wrote out a check to my parents on January 2nd. Once the 2nd installment payment was made the deed for me and the deed of trust for my mortgage got recorded.
Now this makes perfect sense and what I was looking to read about. Thank you! |