Posted by John Behle on October 13, 1998 at 19:34:51:
A land contract is different than a lease option. It carries the rights of ownership, just not the title, but as far as all other things, you own the property once you sign the contract.
At that point you become a buyer and an owner as far as the IRS is concerned.
long-term gains on land contract or lease-option - Posted by Mike in PA
Posted by Mike in PA on October 13, 1998 at 08:17:24:
I would like to flip a piece of land with utilities
that I purchased in April of 1998 and get long-term
capital gains on the profits. I have a potential
buyer. I was thinking of selling it either on a land
contract or lease-option. My questions are, "What is
the effective date of sale for a land contract or
lease-option? Would either or both work well to
achieve my goal? Thanks.
Re: long-term gains on land contract - Posted by pete
Posted by pete on November 10, 1998 at 09:15:43:
The owners of the house seen that we tried everything and there was always a hurrdle to climb.they are willing to do a land contract with us. My question is if I do it can I write the house off on taxes or does the original owners do
long-term gains on land contract or lease-option - Posted by Tom Brown
Posted by Tom Brown on October 13, 1998 at 16:18:08:
A lease/option is not effective until the closing date following the exercising of the option. Make sure that you remember that to recognize long term captial gains you must have held the property for over 1 year. Make sure that your option does not give the buyer the right to exercise the option until after your one year anniversary.
Re: long-term gains on land contract - Posted by Mike in PA
Posted by Mike in PA on October 13, 1998 at 17:06:11:
Thanks. Is the effective date of the land contract
the date the contract begins or when the contract
is paid off?