Posted by Brent_IL on June 30, 2003 at 13:10:34:
I’d tend to use a gifting program or raise the selling price and give them a credit. What I’d be afraid of is giving someone a deposit slip marked “down payment” for an option payment. What are you going to do if they can’t close and ask for their down payment back? Why didn’t you report the “down payment” as income in the year that it was received? See the problem?