If your end buyer is willing and capable of exercising your option then they can probably exercise the option with the original seller.  

I had a client go through this exercise and learn she would be saving about $600/month on taxes (we are in Los Angeles). 

That’s a really tough call, I just sold a property and ate the tax, granted it was relatively low, going through this exercise with a family member right, I’d probably lean toward’s “overpaying” for something to avoid the huge tax hit, but so much of it, is really a question of if you don’t mind managing the properties than yeah 1031 is probably best, if you hate it might be the marginal return of probably an extra 5-6k a year isn’t worth it.

The two parties either agree on a purchase price at the inception of the agreement...or the buyer may agree to pay FMV at the time the option is exercised.

Hey @Paul Doherty Interesting exercise for sure.A $150k note, is that a non-perfoming or performing?

These are always fun exercises but things are never equal.

Option fees are NOT taxable until exercised or extinguished.

According to the complaint, the employees’ discretion “was exercised in a manner that discriminated against non-­?

You can avoid seasoning if you exercise the delayed finance exception....Good luck. 

Over the last couple of years social media influencers have ran with my brand as a term/category of real estate... much like how CrossFit is both a brand but also created a type of exercise.