Tax Question On Lease Option And Subject To
My question is this.... I understand the process of the Sandwich Lease...
Sign a Lease Option agreement with the Seller, CYA form, Warrenty Deed.. The question I have is How does the Seller file
This on there Yearly Taxes?
Same thing goes for Subject To: If I take the Deed, Do A Land Trust, CYA form,
Purchase Contract... How does this work on the Seller Taxes. Now I know that we say that the beneficary files the Taxes on this. But if the beneficary intrest has been assigned to me... How does this affect my filing? If the Beneficary intrest is my LLC?
Does the Seller file the normal way? Are is there something for them to look out for? 
cal252,
If it's IN YOUR CONTRACT...
YOU benefit from the TaxWriteOff..
If you both Claim the write off and the IRS catches it....YOU WILL WIN!!!
....as always,
GoodInvesting, Rocky
cal252,
Glad to meet you.
I will address the Subject To portion of your question.
If you sell to your buyer using a Contract for Deed you buyer is entitiled to the tax deduction, this is a strong selling point when you are using a Contract for Deed.
I may stand corrected but I do not think when you sell using a Lease Option the tenant buyer is entitiled to the tax deduction.
John $Cash$ Locke