Thank you for the additional information. I can address this issue now.
So the home is not what we have to be concerened with. that is good.
With the information you have given, I can not provide a perfect solution. The perfect solution would have been to transfer the business to a trust, and have the trust sell the property. Ther would still have been capital gains, but the trust would have paid it. Set up as a charitable remainder trust. See a descripiton here:
It is not to late to see a trust attonrey to see about transfering the sell contract into trust and letting them receive the balance of payments.
for now, for the past year, the best he can do is file his taxes for a installment sell. This defers tax on the unpaid balance. IN otherwards he only pays capital gains tax as he gets paid for the installments.
He would file taxes using the following form: http://www.irs.gov/pub/irs-pdf/f6252.pdf
So that he does not get his taxes mixed up, he neesd to use the form for the correct date. You can get the prior year forms at: http://www.irs.gov/formspubs/article/0,,id=98339,00.html
I recommend using Turbo Tax for the appropraite year to do the taxes. These are still for sell for as far as 5 years back.