Posted by Chuck-NY on June 23, 2005 at 13:02:00:
Lessee will not acquire title until all lease payments have been made. No credit is given until all lease payments have been made. The total rental payments are less than or equal to fair market value. The option price is about 7-15% of total payments. The “alternative” does not exist until it happens. Keep in mind that the Net Lease & Option to Purchase are 2 separate documents. The Net Lease states that they will be leasing the MH for “x” number of payments and does not refer to the Option to Purchase. I have a very good CPA who has been taking care of my business for many years now. He understands the IRS,and I feel very comfortable with him when he does my taxes. Ernest Tew spent a lot of time and money to develop these contracts. My attorney approved these contracts after he & I did a 3-way call with Mr. Tew. I would suggest you personally contact Mr. Tew if you are inclined to go in this direction or if I haven’t answered your questions.