Promissory Note or Net Lease/Option Agmts - Posted by Rick-Upstate NY

Posted by Jon_FL on October 17, 2003 at 21:46:13:

is not very long for lease and little money is left to excercise option. with a 80% down, why bother to dress it up. Did you live in this home for 2 years prior to sale? If so, it is exempt anyway. On something small,may go below the radar…if you are talking big money, this will probably bre considered a sale. Good rule of thumb is if it closely resembles a sale it will be treated as a sale!

Promissory Note or Net Lease/Option Agmts - Posted by Rick-Upstate NY

Posted by Rick-Upstate NY on October 17, 2003 at 15:09:16:

We have just made arrangements to sell our first home. As it works out it is a close relative. The person has about 80% cash down on the total price and we are holding a small 24 mo note for the balance. We are trying to determine whether a lease option agreement or a simple promissory note is appropriate. We are not sure what is the best to shelter the income for tax purposes. Anyone have any thoughts on this?