Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2019, she leases an office building to use in her business for $183,000 for an 18-month period. To obtain this favorable lease rate, she pays the $183,000 at the inception of the lease. How much rent expense may Maud deduct on her 2019 tax return? Round any calculations to two decimal places and round the final answer to the nearest dollar   I thought since she uses the cash method it will be $183000 however that answer is coming back as incorrect. Please help!

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 26CE: Shanna, a calendar year and cash basis taxpayer, rents property to be used in her business from...
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Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2019, she leases an office building to use in her business for $183,000 for an 18-month period. To obtain this favorable lease rate, she pays the $183,000 at the inception of the lease.

How much rent expense may Maud deduct on her 2019 tax return? Round any calculations to two decimal places and round the final answer to the nearest dollar

 

I thought since she uses the cash method it will be $183000 however that answer is coming back as incorrect. Please help! 

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