Gifting Stock Strategy

General information: A lease with an option to buy is an agreement where a property owner (lessor) leases property to a tenant (lessee) and grants the tenant the option to purchase the property at a predetermined price within a specified timeframe. Crucially, for tax purposes, it must be structured so that it is genuinely a lease with an option, and not a disguised sale. The option fee is separate from the rent, although a portion of the rent might be considered an option premium, if it’s structured correctly.