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SCIN |
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On December 15, the taxpayer sold real estate to his son for SCIN in the amount of the property's value appraised 12 months earlier. The advantage of a SCIN over an ordinary installment note is that, if the seller dies before the debt is paid, the remaining value of the installments is not included in his or her estate. To compensate the senior member for the risk he or she will die before receiving full payment, the SCIN includes a risk premium in the form of a higher purchase price or interest rate. |
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