CHAPTER 12

Rents

Alert
At the time this book was printed, Congress had not extended numerous breaks for 2012 that had expired at the end of 2011. Check the online supplement in February 2013 at www.jklasser.com or www.barbaraweltman.com to see whether these breaks apply for 2012 returns.

From a financial standpoint, it might make more sense to rent than to buy property and equipment. Renting may require a smaller cash outlay than buying. Also, the business may not as yet have established sufficient credit to make large purchases but can still gain the use of the property or equipment through renting. If you pay rent to use office space, a store, or other property for your business, or you pay to lease business equipment, you generally can deduct your outlays.

In this chapter you will learn about:

  • Deducting rent payments in general
  • The cost of acquiring or canceling a lease
  • Improvements you make to leased property
  • Rental of a portion of your home for business
  • Leasing a car
  • Leveraged leases
  • Where to deduct rent payments

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