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Thanks for your help this morning. I have a follow-up question ...Based on your suggestions above on how to structure the transfer of ownership and payout, what will the capital gains consequences be under either scenario for my parents? Their basis is about $45,000. Fair market value is $155,000.
Thanks. So for the "installment sale rule", would their capital gains be realized at the start of the installment sequence, or would they kick in once they had received payments equal to their basis?