We bought a house but included a lease back to the seller. Do I need to report the 45 days that they leased the house as rental income?

[armydub]

The leaseback continued into 2017, but we have since moved into the home at the end of Jan 2017.

[view2 · Accepted solution]

All income is reported., No intention to have a permanent residential rental property. [report in year recieved]

Not Rented for Profit

Where to report.   Report your not-for-profit rental income on Form 1040 , line 21.

IN Turbotax :On the screen "Your  Income Summary," scroll all the way down to the last section, "Less Common Income." Click the Start or Update button 

follow prompt.

[zhongjp058]

From this post it looks we can also treat it as reduction in the purchase price: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4298564-what-is-the-proper-treatment-of-seller-rent-back-included-...>. However I cannot find any IRS reference for it.

Can anyone share the IRS reference if we do can treat it as reduction in the purchase price?

[zhongjp058]

Got the answer. See this post: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3383082-rent-back-post-settlement-occupancy-agreement">https://ttl...>