Tax help on lease purchase agreement!

[Jeffrey Honaker]

I bought two houses on the same deed in a lease purchase agreement in July 2017. I live in the single family and rent out the duplex. I have made repairs on the duplex and collected rent as well while also paying rent to the seller. I am intending to buy the property in July 2018. The IRS says it makes a distinction if it’s a true lease or if the buyer is likely to buy. I would like to know:

1. How to I file this on my taxes? I am using turbo tax but they don’t seem to have a catergory for this type of transaction. 

2. Can I write off my expenses for this deal? I have read that you can write off the payments but the language is so confusing I’m not sure who to believe. 

Help! 

Thanks,

Jeff Honaker