Posted by Jim IL on January 26, 2001 at 18:38:28:
yes
Suggestions, Please - Posted by surfdog
Posted by surfdog on January 25, 2001 at 19:42:22:
I have a don’t wanter in a marginal area. Seller is Free & Clear & is willing to essentially take lease payments over 5 years, & at end of period, house is mine. I don’t want to screw the seller up tax-wise by taking title ( triggering a huge tax bill (especially when I am putting up no money. Suggestions?
Re: Suggestions, Please - Posted by Jim IL
Posted by Jim IL on January 25, 2001 at 20:20:58:
Surfdog,
What about writing it up as a Lease/Option.
Set the price at whatever the total of 5 years rent payments are and then have the seller give you 100% rent credit.
This should cover the problem you pose.
And, it gets you the home for ZERO down, and essentially a 0 % rate on a seller carried note.
I would record something to protect my interest if I were you, like perhaps a memorandum of option, or something.
Just my $.02,
Jim IL
But won’t the seller… - Posted by Ben (FL)
Posted by Ben (FL) on January 26, 2001 at 14:28:21:
Still have to pay a gain on the total price - just not for fice years until the sale is final? And in the mean time he gets to deduct property taxes, insurance, etc. as if it were a rental?
Re: Suggestions, Please - Posted by Irwin(CA)
Posted by Irwin(CA) on January 25, 2001 at 21:57:59:
Jim,
Good suggestion. A performance mortgage (or trust deed) would be a better choice than a memorandum of option.
irwin