Passing Installment Notes by Death Will Not Avoid Any Income

question 94

True/False

Passing installment notes by death will not avoid any income tax on the deferred gain.

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Definitions:

Total Equity

The sum of the ownership interest in a corporation, including common and preferred shares.

Stock Repurchase

The process by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves in the form of cash.

Tax Laws

are the legal rules and regulations governing how individuals, businesses, and other entities are taxed by the government.