Posted by: The King ®
12/16/2003, 10:46:21
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Gary. Your understanding of what I meant is accurate. Here is an additional thought: When one is taking control of a property with a Lease/Option, the Transaction Engingeer, the "optionee," the one buying the property and therefore getting the option, gives money down, that money is called "option consideration" and is not taxed until the option is excercised or allowed to expire. Therefore one can get money now and postpone the tax for in 1 month, 3 months, 3 years or 30 years. This is "aggressive" tax avoindance because the longer it is, the more it looks like a sale and could be challenged by the IRS. But there are myriad benefits to using a strategy such as this and many of them deal with deferring the payment of taxes.
The King
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