My lease contract said I could buy my car for a fixed price at the end of the lease term. Due to the current car shortage, I learned that I could sell the car for much more than this fixed price. So I bought the car for the fixed price and then immediately sold it for more.
I am trying to confirm that the following assumptions I've made are correct:
- The payments I made during the lease term do not factor into the cost basis or gain realized.
- The fact that I had the car as a lease for 3 years prior to purchasing and reselling it does not "count" toward the amount of time I held the asset. In other words, it would be a short term rather than long term capital gain.
