George sold land to an unrelated party in 2021. His basis in the land was $52,000, and the selling price was $156,000—$39,000 payable at closing and $39,000 (plus 10% interest) due January 1, 2022, 2023, and 2024. What would be the tax consequences of the following?
Treat each part independently, assume that George did not elect out of the installment method and the installment obligations have values equal to their face amounts.Ignore interest rates in your calculations.
For example: .48245 would be rounded to .482 and converted to 48.2%.
a. In 2022, George borrowed $15,600 from the bank. The loan was partially secured by the installment notes, but George was personally liable for the loan.Borrowing using the installment notes as security for the debtis is nota disposition; therefore, the installment sale gain is not accelerated.
b. In 2022, George gave to his daughter the right to collect all future payments on the installment obligations.
c. On December 31, 2022, George received the payment due on January 1, 2023.
d. On December 15, 2023, George died, and the remaining installment obligation was transferred to his estate. The estate collected the amount due on January 1,
e. The transfer of the installment obligations to George's estateisis nota taxable event.