Jake, once again, thank you very much for your participation here. I cant tell you how much I have learned from reading your replies to such a diverse group of scenarios. I dont want to go into too awful much detail here for various reasons, but the basics are, 50%/50% aunt and niece/nephew. Niece/nephew have already acquired their step up. Aunt inherited her 50% back in the early 60s at basically a couple hundred dollars. Now worth over 600k. Let's say niece/nephew reach agreement with aunt to buy her 50% at full appraised value to prevent future issues. If niece/nephew work out an installment plan that meets all legal perimeters to reduce the burden, but niece nephew decide to sell the land to a third party. If it is in the contract that third party sale is ok and does not trigger penalty with niece/nephew contract, would it trigger penalty with IRS? |