In Order to Protect Against Rent Increases on the Building

question 78

Essay

In order to protect against rent increases on the building in which she operates a dance studio, Mella signs an 18- month lease for $36,000. The lease commences on October 1, 2018. How much of the $36,000 payment can she deduct in 2018 and 2019?
a. If Mella is an accrual basis taxpayer?
b. If Mella is a cash basis taxpayer?

---

Definitions:

Glaucoma

A group of eye conditions that damage the optic nerve, often associated with increased intraocular pressure, leading to loss of vision if untreated.

Receptor Cells

Specialized cells that respond to specific types of stimuli, such as light, sound, or chemical substances.

Neural Responses

The reactions of nerve cells or neurons to external stimuli, including how they process and transmit information.

Retina

The light-sensitive layer at the back of the eye that contains photoreceptor cells, which convert light into neural signals for visual recognition by the brain.