TAX - Seller Controbution
Hi,
I am working on a deal with a to rescue a homeowner from foreclosure. This homeowner dont have good credit and would make a lousy tenant. There is equity in the home and I offer to to pay off the bank note and use the equity as a deposit in a 2 year leaseback agreement. If I disclose this deposit as a seller contribution will I be taxed on it? I also looking at an option to have seller carry a note under that will be in a secure deposit on the lease. This second option complicate things with lawyers and unforeseen tax and accounting problems. Any advice or experience as it relate to tax or legal difficulties?