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[CA, USA] Contracts with interests that act differently depending on who owns them?
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interfect is in CA, USA
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Can I write a transferable contract that confers some valuable right or interest on the owner when owned by a specific individual or class of individuals (say, my descendants), and some other, dramatically less valuable right or interest when owned by others?

Such a contract would have a low value on the open market, because very few market participants are the named individual in question, so it would sell for slightly above the value of the less valuable right or interest. In fact, I could even flood the market by selling a lot of these contracts.

But if a qualifying individual manages to buy such a contract on the open market, they've managed to acquire a valuable right or interest from me. Is that "transfer" from me to them then taxable?

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8 years ago