The Bluejay Apartments, a new development, is in the process of structuring its lease agreements. The company
Question:
a. Discuss the tax effects of the following alternatives.
• $500 damage deposit and $500 rent for the final month of the lease.
• $1,000 rent for the final two months of the lease and no damage deposit.
• $1,000 damage deposit with no rent prepayment.
b. Which option do you recommend? Why?
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Related Book For
South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337386173
21st Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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