Posted by randyOH on February 14, 2010 at 10:39:47:
In Reply to: Re: Lease/Option Sandwich TAX HELP!!! posted by Dave T on February 14, 2010 at 01:03:56:
Yes, I think you are probably right. The only question might be how many of his tenants actually exercise their options and buy the house. Based on my experience with LOs, it is probably less than 10%. If the percentage is very low, he might be able to argue that he is in the rental business as opposed to the sales business. But, if the percentage is high, then you would definitely be right that he is in the sales business.
Interesting discussion. Thanks for your insights.