Re: Taxes and Lease Options - Posted by GregNorman
Posted by GregNorman on March 31, 2000 at 16:16:34:
In regards to not owning the property for more than a year: I have a controlling lease (both ways) for over a year period that has been through my LLC which is owned only by my wife and I, therefore monthly income is being tracked directly on my Sked E income (both incoming and outgoing rent payments). Turbo tax asks me if I’ve sold it. I say ‘Yes’. It pops up this form 4797 (i think it was). There it asks me when I bought it and sold it, basis, net sales price, etc. Now I just want to make sure this is the correct spot for it to go.
My assignments have been going on Sked C like you mentioned above, but I figured this may be reported differently b/c I’ve ‘controlled’ the property for more than a year (although it was handled differently at the title company) and have been tracking it on Sked E.
Now that I’m thinking about it… does it make any difference in the taxes I pay? If not, I’ll happily just answer the questions as turbo tax asks them and keep my fingers crossed!
PS - If you are reading this and are ‘new’ to the real estate field (and even though I’ve done about a dozen of these, I still consider myself relatively new), take my advice and find a good tax guy before you get in ‘too deep’ and find yourself at tax time thinking ‘God I hope they don’t audit me’ (like me). I’ve got the best intentions, but this stuff is hard to figure out. (Note to self: find good tax guy.)