Posted by Steve Heller on December 21, 1999 at 07:19:58:
You can work them into the payment. However, you could also have them paid separately. I think the most common way would be to work them into their payment.
Who pay’s the taxes? - Posted by Jim LaVerdi
Posted by Jim LaVerdi on December 20, 1999 at 23:59:06:
If I buy a property from a seller who’s equity is 100% and I take a small loan from a bank to satisfy his cash needs and he also takes back a second for the remainder, I will then pay both loans and all taxes due because legally I am the owner. Now, if I lease option the house to my buyer, who will pay the taxes? (I presume it will be ME until my buyer excercises their option) Therefore I should have all taxes and insurances included in his/her rent payments. Please correct me if I’m wrong on this. The taxes will be paid by me (But with the Lessee’s money not mine)
Thank You
Jim LaVerdi
Re: Who pay’s the taxes? - Posted by JPiper
Posted by JPiper on December 21, 1999 at 09:32:39:
If you’re planning on having the IRS view your transaction as a rental and NOT as an equitable mortgage/sale, you had better be paying the taxes and insurance yourself. Obviously you would price your rental payment to reflect your costs, amongst which would be the taxes and insurance. But always pay the taxes and insurance yourself.
JPiper