Parents wishing to sell land to children have an array of choices available to them. The transfer could be accomplished using an installment sale, a private annuity or a self-cancelling installment note. Of course, the transaction could involve a sale for cash, although that is relatively unlikely, both because of the necessity for the parents as sellers to report the gain in the year of sale and because the children as purchasers may not be able to finance a cash purchase.

For the three basic deferred payment options, the tax and non-tax consequences to the parents as sellers may be quite different.