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New Member
posted May 31, 2019 11:53:11 PM

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?

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

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1 Best answer
New Member
May 31, 2019 11:53:13 PM

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.

3 Replies
New Member
May 31, 2019 11:53:13 PM

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.

New Member
May 31, 2019 11:53:15 PM

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-in-closing-statement-for-purchasing-a-rental-property">https://ttlc.intuit.com/questions/4298564-what-is-the-proper-treatment-of-seller-rent-back-included-in-closing-statement-for-purchasing-a-rental-property</a>. 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?

New Member
May 31, 2019 11:53:17 PM