Rent to own residential rental

Forum|Forum|4 years ago
March 29, 2022
1 reply
12 views

Client has rented out house to same person for years and has claimed income on schedule E. Now he says it is a rent to own transaction where he pays same amount for a number of years. How is this reported, no 1099s has been made out because transfer of ownership does not happen until it is paid for.

ProSeries Professional

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Best answer by IRonMaN

Then you have an installment sale. But before you go through that effort, you might want to see the paperwork that backs up what the client is telling you. Sometimes there is a short circuit between reality and what a client tells us, so you always want to see the backup.

IRonMaNAnswer

Level 15

Then you have an installment sale. But before you go through that effort, you might want to see the paperwork that backs up what the client is telling you. Sometimes there is a short circuit between reality and what a client tells us, so you always want to see the backup.

Slava Ukraini!

F

fredrAuthor

Level 5

The big problem is this has been going on for 4 years and now he tells me.

J

jeffmcpa2010

Level 10

Have the client bring you a copy of the contract.

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