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be used (see s 10 and 11) Most conventional mortgages aren t assumable, so these techniques won t be practically applicable very often Occasionally, however, an older mortgage at a low interest rate may be available for assumption If so, it is likely that the principal balance on the mortgage won t be very substantial The legal and other costs of these techniques should also be considered TAX CONSEQUENCES OF SELLER FINANCING There are important tax considerations that both the buyer/borrowers and the seller/lenders should consider about seller f inancing For the buyer/borrowers the most important tax benef it is to be able to deduct the interest paid on a home mortgage Interest paid on a mortgage incurred to acquire a house used as a primary (or a qualif ied second or vacation) residence can be deducted if certain additional requirements are met.

(h). As stated above, we also assume quasi-TEM mode propagation, which is justi ed at the substrate resistivities and frequencies used in this section. This can be further justi ed by nding the ratio of the longitudinal and tangential electric elds of the mode and verifying that this ratio is much smaller than 1. Using the parallelplate model, this ratio is given by jEz j 2er e0 jEx j sdm0 jEz j er e0 jEx j stm0 t)d t(d 3:7:1a 3:7:1b

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The loan on which the interest is paid must be secured by an instrument that makes the buyers ownership in the house specif ic security for the payment of the loan A mortgage will qualify if it is also recorded (f iled with the appropriate government agency) Be certain that all the proper formalities are observed so that the interest will be deductible For the sellers the primary benef it of taking back a purchase money mortgage, or selling on an installment contract, is the ability to use the installment method of reporting gain for tax purposes So long as the sellers aren t dealers in real estate (in the trade or business of buying and selling houses), this method should be available.

Louisiana), Ouachita Wildlife Management Area (central Louisiana), and the Delta Experimental Forest (Stoneville, Mississippi) (Sharitz, 1992). The key factor in restoration is reestablishing natural hydrology (Sharitz, 1992) to regain oodplain function (Petts et al., 1992; Middleton, 1999). It is more important to establish the physical environment (water and soil) than the biological components of the community (Shear and Malcom, 1997), which can reestablish naturally if the conditions are appropriate (Trepagnier et al., 1995; Shear et al., 1996; Allen, 1997; Middleton, 1999, 2000). Without attention to hydrology, the long-term prospects of restoration are not good. In forested wetlands in southwestern Kentucky, planted by the Tennessee Valley Authority 50 years ago, stands changed from hydric to mesic types because of the stream downcutting associated with channelization. This phenomenon also occurred in naturally revegetated forests in the vicinity (Shear et al., 1996) and has been documented in many other places in the Southeast (Shields and Hoover, 1991; Sengupta, 1995). At least for tidal wetlands, it is recognized that the physical setting, including both tidal pulsing and organic matter levels, may be very dif cult to recreate (Zedler, 1996b; Haltiner et al., 1997; Zedler and Callaway, 1999).

where c is a set of vectors linearly dependent on the ordinates yi that we will determine and hi is the width of the segment ( = ai ai 1 ). c is determined by the linear system of equations Ac = b where A is square tridiagonal matrix whose values are dependent only on the segment

The installment method permits the sellers to defer paying tax on the gain realized on the sale until the sellers actually receive the cash payments from the buyer/borrowers This is an important negotiating point for buyers to use to encourage sellers to cooperate If the sellers were to sell their real estate for cash all to be paid in the year of sale they would have to recognize any gain (the proceeds less their investment or tax basis) in that year, if their gain exceeded the $250,000 ($500,000 married f iling a joint income tax return) exclusion for a principal residence, or if the property was not a principal residence or otherwise didn t qualify for the exclusion There is an alternative to this possible tax consequence.

Solution:

A very common approach is for the buyers to pay some amount as a down payment and the rest over a period of time (with interest on the unpaid balance) In this situation, it would seem unfair to tax the sellers on the entire proceeds in the year of sale Not only would they not have received all the.

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