Can Only a PART of paid OPTION Consideration Funds be NON Taxable ?

[Michael Morrongiello]

Can Only a PART of paid OPTION Consideration Funds be NON Taxable ?
In the process of BUYING a PURE Option to buy a SFH subject to an existing loan (at a lower fixed long term interest rate)
Let say the OPTION "Strike price" to BUY the property IF or WHEN the OPTION is EXERCISED is $300K

The seller wants $60K to sell us the OPTION.
Our understanding is that if we designate the $60K as "OPTION CONSIDERATION" - these funds and the USE of these funds are NOT Taxable to the property seller UNTIL one of two things happen; # 1 the OPTION gets exercised, or # 2 the OPTION gets cancelled.

Now we negotiated ALL of the $60K Option Consideration funds paid to be APPLIED towards the $300K Property Purchase STRIKE PRICE. The Seller did not understand or misunderstood and thought that NONE Of these $60K in funds would be credited or APPLIED towards the $300K property purchase STRIKE PRICE. To "soften" or reach a compromised we agreed to ONLY have $30K of the $60K in funds be considered "OPTION CONSIDERATION" funds (giving us the EXCLUSIVE RIGHT to buy the property at the $300K Purchase price) and the OTHER $30K of funds would be STILL be given to them but we informed them that it likely will be consider TAXABLE INCOME to them.

QUESTIONS:
1- We assume we can structure the Pure Option this way ?
2- IF only $30K is labeled & considered OPTION CONSIDERATION funds paid for the OPTION (thus Not immediately taxable)
What do you call or or would be a proper way to DESIGNATE the other $30K in funds given to the Property Seller?
And is it as we thought TAXABLE to them?
3- If its Taxable to them; Must we issue them a 1099 next year for the $30K also paid to them or HOW would you handle that?

Appreciate the input ....

Michael M.