Daily Archives: March 24, 2010

Installment Sale Reporting of Deferred Exchange Boot

Posted on March 24, 2010 by David L. Silverman, J.D., LL.M. (Taxation)

IRC §453 provides that an “installment sale” is a disposition of property where at least one payment is to be received in the taxable year following the year of disposition. Income from an installment sale is taken into account under the “installment method,” whereby income recognized in any taxable year following a disposition equals a proportion of the payments received, that proportion being equal to the gross profit over the total contract price. Continue reading →

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General Power of Appointment Can Neutralize Estate Tax

Posted on March 24, 2010 by David L. Silverman, J.D., LL.M. (Taxation)

A general power of appointment is power of appointment that is exercisable in favor of the donee, the donee’s creditors, or the creditors of the donee’s estate. Under IRC § 2042, the value of property over which the donee possesses a general power of appointment at death is included in the donee’s estate. Continue reading →

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