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If I obtain a lease option on a house, can I put then sell it to someone else as a land contract?
I am particularly concened with the tax issue. The tax break would go to the owner right? Can you write a land contract where the tax break stays with the original owner? Is the best way to handle this just optioning it out at a higher price?
Public Comments
- u need to ask ur local tax office
- You want to put a lease-option on a house, then sell it to someone else as a land contract (also known as a contract-for-deed and/or owner financing)? What tax break are you talking about? You won't be paying any interest because all you have is a lease. The actual owner won't have a tax break because the house is an investment property, not his primary residence. The only person who might get the deduction is the person making the mortgage payments to you. Regardless of who gets the tax break, what you are attempting is highly illegal. You can't sell something you don't own. Rick Lanicek www.primelendingonline.com
- There are only two ways to transfer ownership: 1. exercise your option then sell it 2. If your contract is assignable, to assign your contract to another person. I'm assuming you mean mortgage/loan interest right off as a tax break. If that is the case, it's the person who pays the mortgage/loan, gets the benefit. As a lesee with an option to buy, to the best of my knowledge, you cannot write off anything. Regards
