Posted by: gary
12/15/2003, 20:16:01
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Ray, I just listened to your lease option tapes and I have a question about using Options with your “straddle the fence” tax strategy.
You said that you could use Options to transfer gain from one tax year to another.
i.e. It is close to the end of the tax year. The seller has a tax problem and doesn’t want to receive the money this year but you have a person you can sell the property to. What do you do? You offer to give the seller the money to buy the property as option consideration and to close January 2nd.
You still give him the money, you still have the closing, he gets the money, you get the property and you defer the payment of tax for him. When you say "you still have the closing" I am assuming that you mean that you sign all the closing papers and put them in escrow and then close escrow after the first of the year? Please clarify for me. Thanks.
Gary
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