In February 2010, Taylor sold real estate (adjusted basis of $200,000) for $600,000. Under the terms of the sale, the purchaser issued two notes of $300,000 each, payable annually. In January 2011 and when the notes are worth $560,000, Taylor gives the notes to her son. What, if any, are Taylor's tax consequences?

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The Answer of In February 2010, Taylor sold real estate (adjusted basis of $200,000) for $600,000. Under the terms of the sale, the purchaser issued two notes of $300,000 each, payable annually. In January 2011 and when the notes are worth $560,000, Taylor gives the notes to her son. What, if any, are Taylor's tax consequences?

In February 2010, Taylor Sold Real Estate (Adjusted Basis of $200,000)