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jz2418
New Member

we are doing a rent to own on a rental property for our daughter. We are deducting a portion of the rent from the agreed-on purchase price , until they are ready to buy.

Can I just include the portion that is not being deducted from the purchase price, as rent?
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1 Reply
Vanessa A
Employee Tax Expert

we are doing a rent to own on a rental property for our daughter. We are deducting a portion of the rent from the agreed-on purchase price , until they are ready to buy.

Yes, as long as this is a full on contract where your daughter is paying the Fair Rental Market Value, then you would be able to treat the amount that does not go to the purchase price as rent. 

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