Depends on what you define as Option Money...

Dan

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Depends on how you define option money.. However. I think I
have been pretty clear as to the situation... The contract
will be completed but it is a farm and they are completing
crops before the final sale is completed and final loan
drawn from a bank or other means.

Dan

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"Tax Forum" <dan[at]dchapmancpa.com> wrote:

- quote -

It sounds to me like you have a "contract of sale." All of
the incidents of ownership have been transferred to the
buyer (except the legal title), which is what is necessary
for a transaction to be considered a sale. Thus, you have
an installment sales and it should be reported accordingly.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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"Tax Forum" <dan[at]dchapmancpa.com> wrote:

- quote -

Do you mean option money?

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I have a Family Partnership that is selling property that
hasn't 'sold' until they excercise the note and until then
the payments are considered extension payments to hold the
contract. I figure it is interest or even rent although I
consider it more the first.... How would many of you report
this??

Thanks,

Dan Chapman CPA

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