My question is multi layered; first, I am doing the accounting and tax prep for a trust. Within the trust there is a land contract. One of the beneficiaries is cashing out and I need to determine the present value of the land contract to satisify the attorney and other beneficiaries. I only have the book value (starting at the inception of the trust) and have applied the payments to principal and interest as it is paid down. Where would I look for assistance with this computation? Any suggestion would be appreciated. The next step would be determining is there is a gain or loss or basis adjustment for the beneficiaries.
Rather than trying to do a present value computation, I would go get a really good professional real estate appraiser to value the partial interest of the land contract. Whenever there is more than one owner, the value is deminished because of the fact that we now need to make X people happy with how to handle the process. This is not something I would try to do in my practice.