Tax Consequences for Selling on Lease Option

[Randy King]

Our exit strategy is to sell to tenant/buyer using a lease and separate option agreement. We are trying to hold each property over a year for long term capital gains. Could the IRS at some level of activity (2/yr, 5/yr, 10/yr) step in and say we are actually flipping the houses and declare us dealers and be subject to short term gains and FICA?

[Bill Gulley]

Originally posted by @Steven Hamilton II:

Wayne and Bill are correct. .............................

I do have the authority to answer this question based upon my credentials.

-Steven

Yes, absolutely, Steven has both specific and implied authority to say I'm right anytime! Along with any tax question he's comfortable with in giving his opinions, he knows taxes! :))