JONI9611
Level 3
01-21-2020
05:01 PM
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Do I treat lease to own income as Rental income in the year it is received. Take expenses yearly like a rental property.
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IRonMaN
Level 15
01-21-2020
05:15 PM
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Lease to own sounds more like someone bought an asset and is having it financed by the former owner.
Slava Ukraini!
abctax55
Level 15
01-21-2020
05:34 PM
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And I'm thinking "rent to own" is more a service & goes on Sch C.
Plus I vaguely remember that the accounting for "rent to own" business is a wee bit complicated.
HumanKind... Be Both
RollTide68
Level 8
01-21-2020
07:09 PM
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I would take a look at this article on lease options. May be classified as an installment sale.
https://www.ccim.com/cire-magazine/articles/lease-option-or-installment-sale/?gmSsoPc=1
Greta
Level 9
01-21-2020
07:31 PM
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I have considered it a Schedule E rental because too often the "buyer" walks away from the contract after a few years.
