Gagandeep leased his building to Nabin to open a Pub for the amount of $150,000 per year. The lease requires Nabin to repair any damage to the building at the end of the lease. Nabin fails to repair damage to the roof and tiles of the premises and instead pays Gagandeep a sum of $50,000 for the damage. Advise Gagandeep on the tax treatment of this payment.
Gagandeep leased his building to Nabin to open a Pub for the amount of $150,000 per year. The lease requires Nabin to repair any damage to the building at the end of the lease. Nabin fails to repair damage to the roof and tiles of the premises and instead pays Gagandeep a sum of $50,000 for the damage. Advise Gagandeep on the tax treatment of this payment.
Chapter6: Business Expenses
Section: Chapter Questions
Problem 52P
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Gagandeep leased his building to Nabin to open a Pub for the amount of $150,000
per year. The lease requires Nabin to repair any damage to the building at the end
of the lease. Nabin fails to repair damage to the roof and tiles of the premises and
instead pays Gagandeep a sum of $50,000 for the damage. Advise Gagandeep on
the tax treatment of this payment.
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