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How is lease option consideration taxed?
I leased / optioned a home and was given $5,000 in non-refundable option money.
Public Comments
- It's nothing until the option is closed. Either the option expires worthless at then end of the agreed period or the optionee makes the purchase. If the first event occurs, the $5000 is pure income. If the second event occurs, the $5000 goes as part of the purchase money received. Tax Advisor
