Lease Purchase and personal residence. - Posted by Joe

Real Estate Investing Real Estate Law
1

Posted by John (Rome) on January 01, 2003 at 14:01:01:

you’ve hit a point I was pondering yesterday…you say

quote “of a substantial rent credit against the eventual purchase price (i.e. - equity buildup)”…now my question: in a reversed situation i.e. US selling on an L/O would offering an eventual discount on sales price without mentioning rent credit at all ( separate rent and option contracts)protect US against an eventual t/b pulling this out of a hat in court to avoid eviction?

Thanks

2

Lease Purchase and personal residence. - Posted by Joe

Posted by Joe on December 18, 2002 at 13:28:06:

We are trying to get into a good neighborhood via a lease purchase. At exercise of the option, I would like to do a simultaneous close with a new buyer and keep the profit. Will this profit be exempt from taxes under the personal residence rule? What is the definition of personal residence? Deed? Mortgage? Paying utilities?

Thanks,
Joe

3

Re: Lease Purchase and personal residence. - Posted by JHyre in Ohio

Posted by JHyre in Ohio on December 19, 2002 at 08:50:39:

Ownership for IRS purposes = assuming the benefits and burdens, so you needn’t necessarily have title. With an L/O, I’d want to see you on the hook for repairs,insurance, taxes and accumulation of a substantial rent credit against the eventual purchase price (i.e. - equity buildup). Make sure to enforce your ability to exercise the option (e.g. - deed in trust or escrow).

John Hyre