Or there might be a standard note that is used in the state that covers most everything you want.Anything out of the ordinary should be covered in the initial agreement and not just sprung on the other party at closing.Similar to when you get a loan from a bank.

the property you purchase to sell will be inventory and hence all will be taxed as ordinary trade or business.

I don't think you can use them to turn passive losses into earned income losses you can deduct against ordinary income.

That's at your ordinary rate if you held it less than a year, currently 15% if you hold it over a year.

Realtors are extremely valuable to me overall but in a case like this, having the ability to go directly to the homeowner to make an offer will only help your bottom line if Realtor fee's can be saved.That being said, I wanted to offer my method for making an offer.Granted, this is more effective when the property is "distressed" rather than an ordinary house listed for sale.I don't make offers like most do by offering a number and hope they will accept it or counter.

Anything that you buy and sell for a profit is subject to taxes, normally ordinary income tax.

If not, maybe they can at least point you to the local listing agent.Buying from the bank is a pretty ordinary transaction.

Assuming this doesn't affect your deductions, just figure out how much falls into each bracket to figure your total tax on the deal.If you acquired the option less than one year before you sell, it will be a short term gain, and taxed at your ordinary income rate.

So, you can only do this once every two year.Sell the other two lots and you may or may not have ordinary income on it.

On the other hand, you get favorable capital gains tax rates vs. short term cap gains or ordinary income (and maybe self employment tax) on a quicker flip.