Re: If I may be so bold - Posted by Bill Gatten
Posted by Bill Gatten on May 11, 2000 at 19:15:03:
Someone smarter’n me will no doubt answer this better. But in the meantime.
There is no tax deduction available to the resident in a Land Contract per se, as no legal and equitable title interest is being conveyed until the property is paid for (kind’a like a Lay Away Plan): unless, of course the contract (land sale contract, contract for deed or Warranty) is structured as a Contract FOR sale. Though doing so will typically obviate the necessity for, and benefits of, the land contract in the first place.
For you to set up the contract to benefit your resident in this manner means that you are pretty much divest ting your self of all the benefits of using the land trust for your own objectives. A Wrap or a Lease-Purchase would probably work better.
If I may be so bold?in addition to the (relatively risky) Warp and Lease Purchase, there are other (far superior) ways to accomplish your objectives here without conveying full title and ownership rights until you are ready.