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svet-max [94.6K]
4 years ago
8

Vernon is a cash basis taxpayer with a calendar tax year. on october 1, 2016, vernon entered into a lease to rent a building for

use in his business at $3,000 a month. on that day vernon paid 18 months rent on the building, a total of $54,000 ($3,000 × 18 months). how much may vernon deduct for rent expense on his 2016 tax return?
Business
1 answer:
tester [92]4 years ago
8 0

Answer:

$9,000

Explanation:

Vernon can only deduct the actual lease expenses incurred during 2016, and that is only three months: October, November and December.

= 3 months x $3,000 per month = $9,000

This logic applies to every expense that is paid in advance, you can only deduct payments that apply for the current tax year.

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3 years ago
Angie owns numerous strip malls. A major tenant of one of the strip malls wanted to cancel its lease because it was moving to an
Vlad [161]

Answer:

1. To determine whether she is in the business of being a person who LEASE out property as well as what will be her TAX BASIS for the lease.

2. Ordinary income of $60,000

Explanation:

1. Based on the information given the factors that she should consider in order to determine the amount as well as the character of her income from these circumstances is to determine whether she is in the business of being a person who LEASE out property as well as what will be her TAX BASIS for the lease.

b. Based on the information given we were told that the tenant paid her the amount of $60,000 in order to cancel its obligations under the lease which means that the amount and character of her income from the cancelled lease will be ORDINARY INCOME of the amount of $60,000 which we were told the tenant paid her in order to cancel its obligations under the lease.

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3 years ago
If the typical balance on Lucy's credit card is $650 and the interest rate (APR) on her credit card is 18%, how much in interest
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3 years ago
Which of the following is a valid criticism of the use of money as a store of value in modern economies?a. annual inflationary l
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Annual inflationary loss of buying power is a valid criticism of the use of money as a store of value in modern economies.

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As a result of a highly inflationary reduction in the buying ability of an economy, significant negative economic impacts emerge, particularly rising costs of consumer goods and services, with high-interest rates impacting global markets and lower ratings.

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4 years ago
In BCG portfolio analysis, products in low-growth markets that have received heavy investment and now have excess funds availabl
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Answer:

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8 0
3 years ago
Read 2 more answers
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