Tax Law (Questions About Taxes)/Rent-to Own

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Question
My sister is buying my old house through a rent to own agreement.  It is set up that she pays the mortgage and taxes.  I do not charge her any extra but she does pay for repairs to house if needed.  I have been claiming this as a rental on my taxes every year through turbo tax.  With rent to own agreements is this the way I should be claiming it?

Answer
Chris:

What your sister pays you is your income for the house.  Your expenses are depreciation, interest, taxes, and repairs.  If at some point down the road she becomes the owner by you giving her title you will have to complete the sold rental property.  As you say it is rent to own at this point in time.

John  

Tax Law (Questions About Taxes)

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John L. Tidwell

Expertise

Unemployment tax law both state and federal; determination of employer employee relationship; the usual 20 commonlaw factors for making that determination; and what makes me a liable employer.

Experience

Over 20 years of field audit experience with a state agency

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none

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Education/Credentials
Degree in Accounting from Falls Business College

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