Improvements to Leased Property Made by a Lessee Are Includable

question 16

True/False

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

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Definitions:

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into the contract.

Ratification

The adoption of a contract or act of another by a party who was not originally bound by the contract or act.

Breach

The violation or infringement of a law, agreement, or code of conduct.

Secret Commission

A payment made to an agent or a representative for facilitating a transaction or agreement, typically without the knowledge of some or all of the principal parties involved.