I did have her sign a lease-to-purchase agreement, charging her fair rental price (according to an online real estate zip code tool). I reported it all as income, but am setting aside some of her monthly payment as a credit toward her purchase. I also deducted some expenses last year for things like HVAC service, yard maintenance, etc.
I just didn't know whether the cost of replacing the roof, if required by FHA, would count as a business expense. And you clarified it for me that it'selling expense, reducing the amount realized from the sale. So Thank you very much for the information.
Mike Celeski
