Tax Consequences Of L/O
If you sell on a lease option, then the buyer gets their own financing, what the are the tax consequences. Are their any tax consequences during the option period, or is it just as if you were renting the property.
Brenda
I'm assuming that you own the property. If not (sandwich lease), then you would have no tax advantage with the sale (you are buying and selling at the same closing). Option Consideration itself is not taxable income until either your Tenant Buyer cashes you out OR defaults.