I am cautious about selling on contract because I have been burned in a land contract sale. In a land contract the seller carries a significant amount of risk if land prices fall before the land contract is completed. The seller is OK as long as land prices continue to rise, (the seller gets the land back in a default) but the seller can take a lose when land prices fall before the contact is completed.
In the 1980's my family sold off a small plot of land, for a very good price, to a neighbor who had just purchased the adjoining farm. The buyer wanted to buy it on a ten year land contract because he no longer qualified for another mortgage. Our accountant assured us it was a very good deal.
A long story short, commodity prices fell, land prices fell by 50%, the neighbor lost the farm he had just bought and he re-negotiated our land contract to the then current lower price per acre. We wound up settling for 60% of the original sale price.
Right now federal capital gains taxes are only 15% on your actual capital gain since you inherited the land. You don't pay tax on the bias value at which you inherited it, only the gain since you've owned it. Check what your state capital gains tax rates are.
Have your accountant put down on paper your taxes and net procedes from an outright sale and and from a land contract. Also do your homework or consult a lawyer about the additional risks in a land contract. You may find the tax savings are low compared to your extra risks in a land contract sale. At minimum, make sure you are fully protected in the contract.
Do what is best for you and your sister, your attorney may just be trying to drum up some work for himself when his business is slow.
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Today's Featured Article - Seeing an Old Friend - by Joe Evans. Dad had a concrete contracting business starting in 1960. One of his first pieces of equipment was a Ferguson TO-35 with a Davis loader. Dad replaced the TO-35 with a MF 202 Workbull, essentially an industrialized Ferguson 35 I am told. Dad bought the 202 new in 1962, and I recall quite clearly going to the dealer with him to sign for it.
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