Payment TermsA buy-sell agreement must set forth the terms on which the purchase expense will be paidost agreements permit the purchase price to be paid in installments over a period ranging from three to ten yearsayments could be made monthly, quarterly, or annually, as the parties prefernstallment-sale tax treatment is available to the selling business owner where he or she receives at least one payment after the close of the taxable year in which the sale occurshe down payment must also be specifiedn most cases where the buy-sell agreement is funded with life insurance, 100 percent of the insurance proceeds will be required as the down payment for a deceased owner's market interestor lifetime sales where insurance proceeds are not available, a down payment in the range of 1530 percent is typicaln installment sales, an interest rate must be specifiedor buy-sell agreements involving nonfamily members, the interest rate is often a floating rate geared to the prime ... [Read More - Us Search People]
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