Question

Rent to own agreement on property in Dec 2020. rec'd lump sum upfront, which paid the loan off. do I list this property on taxes as rental property or property sold?

Forum|Forum|5 years ago
January 15, 2021
1 reply
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the agreement is btw me and the new buyers. my loan is now paid off, but they will continue making payments.

TurboTax Self Employed Online

The mortgage payoff is immaterial to this situation ... you did not sell the property yet when they are Renting to Own. Hopefully you had a lawyer set up the contract which spells out how much is rent and how much is down payment. https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/how-do-we-treat-a-rent-to-own-agreement-for-rental-properties/00/664039#:~:text=In%20general%2C%20the%20buyer%20may,Properties%20%26%20Royalties%20section%20of%20TurboTax.