SEC. 7. MANNER OF MAKING

CHANGE OF ACCOUNTING METHOD

The tax treatment of rent-to-own contracts provided in this revenue procedure constitutes a method of accounting. A rent-to-own dealer currently treating its rent-to-own contracts in a manner inconsistent with this revenue procedure ( e.g., as sale transactions) must seek the Commissioner’s consent if the dealer wants to change its method of accounting to treat such contracts as provided in this revenue procedure. A change in method of accounting for rent-to-own contracts within the scope of this revenue procedure is a change of accounting method to which §§ 446(e) and 481 apply, and must be made in accordance with Rev. Proc. 92–20, 1992–1 C.B. 685.