Ground Rent

[tacksman]

I usually get one or two items I've never encountered each year. If I live long enough I'll get really good at this. At any rate....

I know redeemable ground rents are treated as mortgage interest by those paying. I'm thinking that for those receiving, it would be a line item on Sched B.

Likewise nonredeemable ground rents are treated as rental payments. I'm thinking income on Sched E.

Any confirmation for this from anyone.

Thanks ...

[JG EA]

I usually get one or two items I've never encountered each year. If I live long enough I'll get really good at this. At any rate....

I know redeemable ground rents are treated as mortgage interest by those paying. I'm thinking that for those receiving, it would be a line item on Sched B.

Likewise nonredeemable ground rents are treated as rental payments. I'm thinking income on Sched E.

Any confirmation for this from anyone.

Thanks ...

In some states. And if it is like an option to buy. And if it is for your home. But mostly if you rent land it is rent.

Pub 936: "Nonredeemable ground rents. Payments on a nonredeemable ground rent are not mortgage interest. You can deduct them as rent if they are a business expense or if they are for rental property."