Rent-to-own and lease option payments
Varies
Can You Write Off Rent-to-own and Lease Option Payments?
Short answer: Payments under a lease with an option to buy are usually rental income; if the deal is really a sale, it's treated as one instead.
Pub 527 treats anything you receive for the use of the property, in cash or in kind, as rental income in the year you get it.
Records to keep: Keep leases, receipts, a log of repairs vs improvements, mileage to the property, and closing statements.
Rent-to-own and lease option payments
Varies
Real Estate / Landlords / Property Managers / Agents
Payments under a lease with an option to buy are usually rental income; if the deal is really a sale, it's treated as one instead.
Business justification
Payments under a lease with an option to buy are usually rental income; if the deal is really a sale, it's treated as one instead. Pub 527 treats anything you receive for the use of the property, in cash or in kind, as rental income in the year you get it.
Category
- Rental Property Write-Offs