I am getting into a rent-to-own lease covering the entire mortgage. What is the best way for the home owner to transfer the tax benefits to me?
2007-04-26 10:43:01 · 5 answers · asked by Ron 1 in Business & Finance ➔ Taxes ➔ United States
I'm a Realtor in AZ and if you are renting and not actually owning yet I don't believe there is any tax advatange to be transfered. Your best bet is to check with an attorney or tax professional in your state.
2007-04-26 10:52:53 · answer #1 · answered by vinster82 5 · 0⤊ 0⤋
In some states a "contract for deed" arrangement is possible. The owner (or an escrow agent) holds title to the property until all payments have been made, and then title passes to the buyer. The contract specifies terms of payment and interest rate.
The IRS considers the person buying the house under a contract for deed the equitable owner, and allows the interest to be deducted as "mortgage interest" even though there is no mortgage. Also, if the buyer pays the real estate taxes directly to the taxing authority, those payments can also be deducted.
See if your state allows this arrangement. At least get a legal document showing how title will transfer to you, regardless of the taxes. Having it reviewed by your attorney may be a good idea too.
2007-04-26 16:43:38 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
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2016-07-19 12:35:50 · answer #3 · answered by ? 3 · 0⤊ 0⤋
They can't. You are not legally obligated to pay the owner's mortgage so you can't deduct HIS interest payments.
On a CFD, you are not the owner of the property until you make the final payment according to the agreement. You are a renter up to that point and get NO tax benefit from the transaction at the Federal level.
If your state offers some sort of rebate, deduction, or credit for renters you'd qualify for that and that alone.
2007-04-26 10:46:23 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Rent-To-Own Home : http://RentToOwnHome.uzaev.com/?paiu
2016-07-11 21:29:17 · answer #5 · answered by ? 3 · 0⤊ 0⤋