Improvements to leased property made by a lessee are includible in the lessor's gross income only if made in lieu of rent or if rent is reduced because of the improvements.

Question

Quizplus · Accepted Answer

If a lessee makes improvements to a leased property in lieu of rent or if the rent is reduced due to these improvements, the value of the improvements is considered income to the lessor.

Improvements to Leased Property Made by a Lessee Are Includible