Posted by Brad Crouch on May 18, 1999 at 11:28:33:
S.L.S.,
Taxes on option consideration are not due until the option is either exercised, expired or abandoned.
That said, consider this: If you don’t pay taxes on the option money this year, and your income is greater next year . . . which year would be “cheaper” for you to make that tax payment?
Food for thought.
Brad
taxes on option considerations - Posted by sls
Posted by sls on May 18, 1999 at 09:17:58:
When I sandwich lease option a SFH to a tenant and receive, let’s say, $5,000 in option consideration, do I have to pay taxes on that $5,000 at the end of the same year? Is there any particulars I need to do with the money (place in certain account, etc.) or is that my money to pocket?
Thanks for all the help…