Khali owns two commercial buildings in downtown Sheridan. XYZ Company expressed an interest in one of the properties. They would like to rent the building for five years. Anxious to close the deal, Khali tells XYZ Company he will provide a significant discount on the first two years of rent, if XYZ Company pays in advance. XYZ Company agrees. On November 15, Khali receives XYZ’s security deposit in the amount of $2,500 that is refundable at the end of the lease period. A check in the amount of $30,000, covering the first two years of rent arrives on December 1, 2022. How much rental income must Khali include on his 2022 tax return?
Khali owns two commercial buildings in downtown Sheridan. XYZ Company expressed an interest in one of the properties. They would like to rent the building for five years. Anxious to close the deal, Khali tells XYZ Company he will provide a significant discount on the first two years of rent, if XYZ Company pays in advance. XYZ Company agrees. On November 15, Khali receives XYZ’s security deposit in the amount of $2,500 that is refundable at the end of the lease period. A check in the amount of $30,000, covering the first two years of rent arrives on December 1, 2022. How much rental income must Khali include on his 2022 tax return?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Khali owns two commercial buildings in downtown Sheridan. XYZ Company expressed an interest in one of the properties. They would like to rent the building for five years. Anxious to close the deal, Khali tells XYZ Company he will provide a significant discount on the first two years of rent, if XYZ Company pays in advance. XYZ Company agrees. On November 15, Khali receives XYZ’s security deposit in the amount of $2,500 that is refundable at the end of the lease period. A check in the amount of $30,000, covering the first two years of rent arrives on December 1, 2022.
How much rental income must Khali include on his 2022 tax return?
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