<Steve> 82 Report post Posted August 20, 2005 Hello DaveT and everyone- While doing Lease Options, I do not own the properties and therefore am unable to take deductions for expenses etc. Is it a reasonable idea to consider changing my tax position by setting up my current L/O dealings as a business, and as I currently do, have my business make all the payments. As a business owner, I can pay all of my expenses FIRST and then I get taxed only on whatever is left over. Is this correct? This is significant, especially after making payments to the sellers, not to mention marketing my business, and administrative cost etc... Any thoughts or comments? Thanks Share this post Link to post Share on other sites
Dave T 0 Report post Posted August 20, 2005 Steve, I don't accept your premise that you are not operating a business. If you are doing sandwich lease options in the absence of a formal business entity, then you are conducting your business as a sole proprietor. Rather than a tax issue, you have an accounting problem to solve. Talk with your CPA about setting up an accounting system for your business to track all your revenue and expenses and open a business checking account for your lease/option activity. Come tax time, a good accounting system will prove invaluable. Share this post Link to post Share on other sites
