Minus: Present value of the rent
Practice tip: The deductibility of rents
between related parties is essentially determined by the facts and circumstances; thus, it is wise for the member and the LLC to build evidence at the onset of the lease to support the reasonableness of the rent
called for in the lease agreement.
But, for several years, the CHA has had rent
ceilings in place that were far lower than market rate prices.
In addition, since section 467 triggers recognition of income and deductions at a time unrelated to when rent
is paid, the final regulations under section 467 may also provide planning opportunities.
A variation of the rent
holiday is a graduated rent
payment schedule, under which a tenant pays less rent
in the first year(s) of a lease; each year thereafter, the rent
18) The lease for Crown and clergy reserves was for twenty-one years and the rent
was pre-set to rise at seven year intervals.
But as Rent
hits the road, the proverbial question remains: Will it play in Peoria?
There will be rent
increases," Santa Monica Rent
Board member Lisa Monk Borrino told the Los Angeles Times a few days after the quake.
More than 23% percent of renters state they choose to rent
for financial reasons.
A cash-method taxpayer generally may not deduct prepaid rent
in the year paid because it is not an ordinary and necessary business expense for that year.