Kim leased an office building to USA Corporation under a ten-year lease specifying that at the end

Question:

Kim leased an office building to USA Corporation under a ten-year lease specifying that at the end of the lease USA had to return 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?
A partial list of research sources is

  • Sec. 109
  • Boston Fish Market Corp., 57 T.C. 884 (1972)
  • Sirbo Holdings Inc. v. CIR, 31 AFTR 2d 73-1005, 73-1 USTC ¶9312 (2nd Cir., 1973)
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Federal Taxation 2018 Comprehensive

ISBN: 9780134532387

31st Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

Question Posted: