Re: L/O mostly for tax purposes…(long, painful) - Posted by HR
Posted by HR on February 10, 2002 at 13:14:29:
I’ve started doing the same, for the same tax reasons.
Here are some other suggestions to include in your lease option deal:
TB CANNOT exercise before the 13th month. Must lease for a year first. This is not always the case with some lease option contracts, which allow the buyer to buy anytime within a year. Like you, I don’t want them exercising for at least a year.
Make sure you retain the benefits and burden of ownership. For example, make sure your lease says you will pay taxes and insurance. If this were a disguised sale, this would not be the case.