Question

I am using the 2019 Federal Taxation

3. 1:3-42 Rental Income. Ed owns Oak Knoll Apartments. During the year, Fred, a tenant, moved to another state. Fred paid Ed $1,000 to cancel the two-year lease he had signed. Ed subsequently rented the unit to Wayne. Wayne paid the first and last months' rents of $800 each and a security deposit of $500. Ed also owns a building that is used as a health club. The club has signed a fifteen-year lease at an annual rental of $17,000. The owner of the club requested that Ed install a swimming pool on the property. Ed declined to do so. The owner of the club finally constructed the pool himself at a cost of $15,000. What amount must Ed include in gross income?

Answer 1

Given that The regular rental income from the appostment is - $ 9,6000 $800X12) The regular sendal income from the health club is = $ 17,000 In additional to the income above , Ed had to include gross income. The amount $2,6000 concists of the lease cancellation payment of $1,000, the first monk dent of $800, and the last month's sent The security deposit $500 bill not be tared. The value of the swimming pool is not included in gross income, and will not be taxed the rent is not deduced. $2,600 in be cause