Income Taxes for t/b on lease option?

I am still currently doing calculations for my first real estate deal. I plan on doing a lease option and increasing the rents thereafter. I fully expect to have a large positive cashflow. Now, my question is this:

Can I be taxed on the positive cashflow I earn while I am leasing the house?Keep in mind that I am NOT the owner. The terms have me only paying the utilities while I am leasing the property and rent(with credit toward the purchase). I have never heard of paying income taxes on a rent to own.

Thanks in advance

You pay taxes on income earned after netting business expenses regardless of your ownership. From your post I am assuming you are leasing a house with option to purchase and plan to sublease the property in the hopes of generating positive cash flow? You will show the rent from your sub tenant as income and the rent you pay to the current owner as expense. The difference if positive is taxable income.

Can I be taxed on the positive cashflow I earn while I am leasing the house?

Yes. Report your L/O income and expenses on Schedule C then carry the net income to Schedule SE