A relative of mine has owned some rental properties since 2003. I just became aware that he has had an informal agreement with his son (the renter) that he will convey the house to him after an agreed upon amount has been paid. There has been NO formal Rent-To-Own Agreement, only an informal understanding between the two of them. His son has continued to pay timely and the agreed-upon amount is expected to be paid in full early next year, at which time his dad currently plans to do a simple conveyance thereby placing the house in his son's name.Once I learned of the above arrangement, a zillion questions began twirling around in my head. Could it be as simple as explained above? Are there tax implications, both pertaining to how the income has been reported to this point (and continues to be reported) and to what happens when the house is actually conveyed to the son?Thanks,Opv
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