Lease Option Or Contract For Deed
I am moving out of my current house and will be either doing a lease option or a contract for deed to a company that provides services to people with special needs. I have 1/6th ownership in this company that I am do this with. So it is almost like I am leasing it back to myself. I think that a lease option would probably be the best option for me, but a contract for deed would be better for the group of people i am involved with? Are there any tax benefits for a Buyer on a lease option. Can a person do a contract for deed if one still has a mortgage on there property? Is there a way to structure it where both the buyer and the seller has tax benefits. I am new to real estate investing and property ownership any advise on this would be appreciated.
kind regards
Brian
Nope, no tax benefits for the Buyer on a L/O (other than business deductions if doing it as a business). As far as both Buyer and Seller getting tax benefits, this is a question you might want to ask on the legal Forum. Keep in mind that the IRS is not so interested in what you do so much as what you were thinking while you did it (your intent), so tread carefully. Some people have talked with their neighbor, and both agreed to buy each other's house (for roughly the same price) and then rent it back to them. I would still live in my house and have yours as a rental and vice versa. Methinks the IRS might have a problem with that, but who knows. I really think you should ask this in the legal Forum.