If I contract with a seller for a lease option, and I rent the home out in the interim, do I get the tax benefits of mortgage interest deduction and depreciation?
Thanks for all responses!
Mike
Good Morning,
Generally you have two contracts, one for the lease, one for the option. Niether on gives you title to the house, therefore no interest deduct or depreciation.
Darin
Darin is right. The homeowner retains all the benefits of ownership until the option to purchase is exercised.
A great selling point to use when you are negotiating with the seller!