 sale/leaseback (by Mike [WA]) Oct 12, 2008 6:28 AM
 sale/leaseback (by Stephen [WA]) Oct 12, 2008 11:52 AM
sale/leaseback (by Bartleby [TX]) Oct 12, 2008 12:57 PM
sale/leaseback (by Mike [WA]) Posted on: Oct 12, 2008 6:28 AM
Message:
State Specific Question About: WASHINGTON (WA)
I was wondering, being out of touch on the subject for some time, but do sale/leaseback arrangements work? That is, do they fly with the IRS? My folks have a condo, don't itemize anymore, & I sure could use a writeoff- so let's say I arrange a purchase of their condo from them, make the payments to them on a private note, execute a lease agreement & collect rent to cover the note payments. Again, does this fly with the IRS these days? Thanks!
--67.161.xxx.xxx |
sale/leaseback (by Stephen [WA]) Posted on: Oct 12, 2008 11:52 AM
Message:
I believe you would have to rent it to them for market rates. If you rent it to a relative/friend for less than market rate, that would be a problem. I don't know what issues there might be relating to the interest rate you pay, but if it is at or close to current market rate for loan, then that should work too. Then you are handling it as a business and IRS should be OK w/it. --207.200.xxx.xx |
sale/leaseback (by Bartleby [TX]) Posted on: Oct 12, 2008 12:57 PM
Message:
The problem is you have to pay interest to them at market rates or a little less than market rates which they have to declare as income.
If they "transfer" title to you without compensation it is a gift. Be careful of successive periodic payments which could be construed by the IRS as payments and declared "repayment of loan" in this particular situation. --76.236.xxx.xx |
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