Low-equity land transfer : the installment sale
"A sale of farmland where the purchase price is paid over a period of years is called an installment sale and is one type of low-equity transfer. Installment sale transfers of farmland can be advantageous to both the buyer and seller. The buyer is able to purcahse a farm with a low initial capital investment. If the transaction qualifies under the tax laws for installment reporting, the seller benefits because the income tax laws allow him to spread his capital gain over a period of years. By reporting the capital gains over a longer period, the total income tax paid on the capital gains can be reduced."--First page.
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