Posted by Bud Branstetter on August 05, 1999 at 16:08:21:
If these are the amounts that are net costs and the corp is a dealer then yes, you pay the taxes on all the profit in current year. Bummer isn’t it. If you did it in a Roth then no taxes would be paid. Or do a L/O in a limited partnership entity for several years then do the contract/owner financing after that. You can structure their option as if they had had 30 year financing from the beginning. There are a number of items to pay attention to so that you document it as a L/O for that time period. Because it is an investment property if you do it as a lease first then you can even do 1031 exchanges if needed.