Kim leased an office building to USA Corporation under a ten-year lease specifying that at the end of the lease USA had to retur
n the building to its original condition if any modifications were made. USA changed the interior of the building, and at the end of the lease USA paid Kim 30,000 instead of making the required repairs. Does Kim have to include the payment in gross income
In this specific scenario yes, Kim does have to include the payment in gross income. This is because USA paid Kim a specific set amount for her services (leasing the building), this means that the 30,000 that Kim received are her earnings for providing such service and therefore must be included in the gross income. The only things that are exempt from this are state and municipal bonds interest anything else must be recorded/included
An admission in the law of evidence is a prior statement by an adverse party which can be admitted into evidence over a hearsay objection. In general, admissions are admissible in criminal and civil cases
