Updated over 7 years ago on . Most recent reply
Rent to Own Tax Consequences
I understand that the RTO options payment portion isn't reported income for the seller and is thusly tax-free. Is that the case for a scenario where 100% of the monthly payment is credited to the buyer as equity (no interest)? Or, would the IRS likely only allow that amount which is above fair market rent to not be reported as income? Thanks in advance!