Freddy, a sole proprietor, is one of several retail business owners competing to rent space in a desirable location that rents at a rate of $2,000 per month. Freddy pays the landlord 12 months’ rent up front, even though only two months’ advance rent is required. The lease term begins October 1, 2017. In addition, Freddy gives the landlord a $2,500 cash gift in order to sweeten the deal. Considering only these facts, what amount is deductible on Schedule C of Freddy’s 2017 tax return?
a. $4,000
b. $6,000
c. $6,500
d. $8,500