A lease-option to purchase may be a solution for some potential home buyers, but it is not suitable for everyone. If you are not sure you can buy the building at the end of the rental period, you may be better served with a standard lease. In the meantime, take the time to work on your credit, save extra money and get a better form of your finances so you can hit when the time is right. Finally, it would be a waste to spend extra money on a rental option and above-market rent, without making significant progress towards real estate ownership. Sometimes sellers give the option of money to their real estate agent as the full payment of the commission. Brokers are not always involved in exercising leasing options or executing leasing contracts, and you will probably still need a real estate lawyer, even if you have retained the representation of the real estate agent. Agents are not lawyers, and they cannot give you legal advice. Receive all the information and do your due diligence as in the case of a normal sale, including: The way you pay your revenue tax depends on the state where you decide to register your rented vehicle. Most states offer a tax advantage for leasing by forgoing the normal VAT you would pay for a new car. Instead, you pay a monthly user fee corresponding to the VAT rate. To find out how much tax you pay on your rental agreement, just take your rent and multiply it by the percentage of VAT to get your monthly payment. Consider all rental conditions.
If you are renting, you are responsible for excessive wear and damage and missing equipment. You must also maintain the vehicle in accordance with the manufacturer`s recommendations and maintain insurance in accordance with the rental company`s standards. If you terminate the lease prematurely, you will often have to pay a significant fee for early termination. For the seller, the payment of the option can be treated as a down payment or a first payment of the transaction. The total amount of payments may ultimately contribute to a capital gain or loss, both of which have a tax impact. Rental income also contributes to capital gains. The seller can no longer claim depreciation on the property if they are no longer considered owners. Consider the total cost of financing the car, not just the monthly payment.