Posted by Bronchick on December 23, 1998 at 10:40:55:
You can report sandwich lease/options on Schedule “E”. Rather than showing mortgage payments, you show “Master Lease Payments” and report all other expenses incidental to the units.
Posted by Jennifer(NH) on December 23, 1998 at 10:13:13:
I’m currently in the works of obtaining a multi-family using a Lease/Option agreement. (I’m not celebrating until the papers are signed) I understand that the seller continues to enjoy the tax benefits of the property, but as a buyer on a lease/option do I report the gross income I make off the property and do I get to write-off any of the expenses of the property i.e. water/sewer, maintenance? Any guidance would be appreciated.