I leased / optioned a home and was given ,000 in non-refundable option money.
It’s nothing until the option is closed. Either the option expires worthless at then end of the agreed period or the optionee makes the purchase.
If the first event occurs, the $5000 is pure income.
If the second event occurs, the $5000 goes as part of the purchase money received.
Tax Advisor
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It’s nothing until the option is closed. Either the option expires worthless at then end of the agreed period or the optionee makes the purchase.
If the first event occurs, the $5000 is pure income.
If the second event occurs, the $5000 goes as part of the purchase money received.
Tax Advisor