Effect of OID final regs. on private annuities.(original issue discount; IRS final regulations)

From: The Tax Adviser | Date: June 1, 1999| Author: Lee, Shirley K. | Copyright information

A private annuity is an exchange of cash or property for the promise of a series of fixed payments over time, by other than an insurance company; it is frequently used for estate planning purposes. How much income is imputed to these payments? Is the imputed interest deductible? Does it matter whether the property exchanged is publicly or nonpublicly traded? This article answers these and related questions.

Private annuities are commonly used in intrafamily sales for esta...

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