The sale leaseback of assets can be good for businesses, homeowners, and investing. But, one must check out the Federal and State tax liabilities and qualifications of leasebacks.
In California for example, if the sale leaseback fails certain tests, it will be denied and treated differently under Legal Ruling No. 49. It is nice to loosen up some capital, and get tax benefits at the same time, by using a sale leaseback.
I wonder if a homeowner who is facing foreclosure opts for a sale leaseback and the new owner decides that they don't want animals. What does the animal owner do? Take them to the overcrowded shelters or rescues, put them down, or try and find a new home? This could be something for a homeowner to consider when writing up a contract for a sale leaseback; and what percentage is the homeowner going to sell? If the home owner sells 100% on a sale leaseback, what are the conditions of the sales leaseback? By selling 100%, the homeowner has no say about anything. The person who now owns the home on a sale leaseback can make the rules, change things and more, with the person selling the asset not having much of a chance to comment.
