Interest on property sale
Hello, I am buying land from my Uncle on a land contract. He stated he wanted $50,000 for the land over 10 years, no interest. Since going to the Title Company, I have learned that he must charge me interest. And according to the IRS for March 2010, the long term rate is 4.35. This will make the total price for the land over $61,000. Not his intentions, or mine. If we make the sale price lower (+/- $35,000) so that WITH interest, the total sale will be $50,000, what would be the pitfalls for doing this for both of us? Oh, I live in Wisconsin..