One of the exemptions from triggering this clause is "(4) the granting of a leasehold interest of three years or less not containing an option to purchase" (see http://www.law.cornell.edu/uscode/text/12/1701j-3 section 3, item 4).

I don't know what would be a good reason, but there are some that exist.It is an excellent program for those that qualify and have the cash to pay the prepaid items that Lynn was refering to.

These types of items will definitely get you in trouble.

Earthquake insuranceMy initial thoughts are is that it's an unnecessary (perhaps) and expensive (definitely) item.

Hi all,Hope this is the right forum.Renting a small 3br 1bath house built in 1950's with floor furnace ( not working anymore )Was hoping to get some tips on low cost upgrades.I would like to upgrade certain items without a major rehab cost.replace kitchen counter tile with ?

Item 3 isn't a prohibited transaction, but it is a contribution.1 and 2 clearly are because the qualified plan (Agent John's plan, I assume) is doing a transaction that personally benefits John.

I'd ask each place to itemize their closing costs, as the components can vary.

You are entitled at the very least to get free copies of your reports annually from each of the major bureaus.I respectfully disagree with the person who said that disputing items with the credit bureaus is a complete waste of time.

Regarding this insentive from IRS, I have a deal I am working on where I will be buying a 2 family and renting it with one tenant doing a contract for deed agreement to buy the property.I am asking for 10k up front from tenant so I feel comfortable in that they will not walk or change their mind.tenant says they can get the 10 from their traditional IRA, they do not have funds anywhere else.My question is if we did a CFD they legally wouldn't own the property but would be under a contract to purchase it. so if you haven't guessed my question how does the IRS view this?

Add these items to your budget.