The lease agreement says "Tenant shall pay monthly rent in the amount of $10,000. which shall be credited towards purchase price in the event tenant exercises it's option to purchase. I guess my question is if I treat the $10,000. as rent then in the future when the tenant exercise it's option to purchase and the rent is credited to the purchase price, will that reduce the purchase price at that time. I feel like if we don't reduce the purchase price by the prior rent paid then client will pay tax on the income twice.

Hope this makes since.

Elated