Author: Elliott Manning

Publisher:

Published: 2009

Total Pages: 0

ISBN-13:

Although this article is more than fifteen years old, in light of the recent Tax Court Memorandum Decision in Est. of Angle, v. Commissioner, T.C. Memo. 2009-227 and earlier proposed regulations, Proposed Rules (REG-141901-05) On Tax Treatment of Exchanges of Appreciated Properties for Annuities, that are still pending, it may still be worth consulting. The issues of the proper relationship between the major types of deferred payment sales, particularly in families, that include installment sales that may include, contingent as well as fixed payments, private annuities, that are usually measured by the seller's' life, and a hybrid known as the self-cancelling installment note, which involves an installment sale that provides that payments terminate usually on the seller's death (SCINs) create tax planning issues and problems discussed in the article, but also tax policy issues because of the complex different application of the rules relating to original issue discount (OID) and the regulations relating to contingent payment sales. Many of these issues are also explored in Comment of the Real Property, Probate and Trust Law Section of the American Bar Association on REG-141901-05 (Exchanges of Property for an Annuity) (Jan.16, 2007), 2007 TNT 217-19, on which the authors participated.