Is Option Money Taxable Now?

Comments(5)

• 
  nateham1529th May, 2008

  LOK,
  Do you put away the taxable amount of the option money into a seperate account when tax time comes around? Kind of like doing your own withholding.
  
  Thanks,
  
  Nate

• 
  nateham1529th May, 2008

  LOK,
  
  Thanks for your response. Few more questions
  
  1. Is your salary a deducton? If so, then why not take all the option movey as the deduction?
  
  2. How much do you pay yourself on each deal?
  
  3. If it is possible that your T/B will be expecting the option money as down payment when they exercise their, should the option money not be spent? Or is refi the only way to go when the option is exercised, to avoid jeoperdizing the option money?
  
  Thanks,
  
  Nate

• 
  nateham1529th May, 2008

  LOK,
  
  Thanks for the info.
  
  You say you pay yourself after expenses. What kind of expenses would need to be paid out of the option money before you can pay yourself?
  
  Thanks Bud
  
  Nate

• 
  LeaseOptionKing29th May, 2008

  Any expenses in running the company throughout the year. Of course, you can spend any of it you want. At the end of the year, you will take all the income and subtract expenses (of which salary can be one) to see what is left as taxable income.
  
  _________________
  "A deal is only as good as the quality of your Contracts." --Me[ Edited by LeaseOptionKing on Date 05/29/2008 ]

• 
  cjmazur30th May, 2008

  you might check out http://www.thefreelibrary.com/Loan+purchase+commitment+fees+upheld+as+option+premiums-a0142386366