Rental Income

[JONI9611]

Do I treat lease to own income as Rental income in the year it is received. Take expenses yearly like a rental property.

[IRonMaN · Accepted solution]

Lease to own sounds more like someone bought an asset and is having it financed by the former owner.

[abctax55 · Accepted solution]

And I'm thinking "rent to own" is more a service & goes on Sch C. 

Plus I vaguely remember that the accounting for "rent to own" business is a wee bit complicated.

[RollTide68]

I would take a look at this article on lease options.  May be classified as an installment sale.

https://www.ccim.com/cire-magazine/articles/lease-option-or-installment-sale/?gmSsoPc=1

[Greta]

I have considered it a Schedule E rental because too often the "buyer" walks away from the contract after a few years.