Do most of you offer Lease/Option because of title seasoning issues, or because you prefer to postpone closing for a higher sales price?
What is your motivation?
Red12,
I assumed your T/B wants to buy before the option is up. If the lease/option is coming to an end, no problem, you have had equitable title for a year by way of your option to buy from your sister. If less than year you could sell your option back to your sister to release her from her obligation to sell to you. Your taxable income is what she pays you, and her taxable income would be reduced by the same amount. See your CPA.
Red12,
I assumed your T/B wants to buy before the option is up. If the lease/option is coming to an end, no problem, you have had equitable title for a year by way of your option to buy from your sister. If less than year you could sell your option back to your sister to release her from her obligation to sell to you. Your taxable income is what she pays you, and her taxable income would be reduced by the same amount. See your CPA.