The IRS doesn't dictate loan underwriting but they can dictate the treament of the exchange of money as it relates to taxation

The reason for this is Canada doesn't recognize LLC and it triggers double taxation.

For LLCs you can choose S Corp taxation with the IRS and they are generally easier to operate than corporations.

I received a notice from the Division of Assessment & Taxation regarding the recent transaction and the sales value of my recent purchase.

When you withdraw that $13,771.30 from your IRA it will be subject to your ordinary income tax, the same as if you had earned that money.This may seem like double taxation.  

There is a growing number of Canadians - et Québécois(e) - here who can be of assistance with any questions specific to financing, regulation or taxation in Canada.

I looked around but did not see anything specific regarding the order of taxation. 

The seller is open to owner financing due to not having to pay all of the capital gains tax at once, but rather pay it over the life of the loan to me.I would essentially be leading him to believe that he would be able to pay the taxes over a period of 10 years, and then turn around and force him to pay the taxes in full 6-12 months later when I refinance.

The goal is to set up an investment structure that optimizes the level of taxation given the aforementioned context.

(For example, what if I die, what if I live too long...) and a way to avoid taxation.