26-U.S.C.-110
§110 – Qualified Lessee Construction Allowances For Short-Term Leases
Pathway
Title 26 > Subtitle A > Chapter 1 > Subchapter B > Part III > Section 110
Details
- Reference: Section 110
- Legend: §110 – Qualified Lessee Construction Allowances For Short-Term Leases
- USCode Year: 2013
Provision Content
(a) In general
Gross income of a lessee does not include any amount received in cash (or treated as a rent reduction) by a lessee from a lessor—
(1) under a short-term lease of retail space, and
(2) for the purpose of such lessees constructing or improving qualified long-term real property for use in such lessees trade or business at such retail space,
but only to the extent that such amount does not exceed the amount expended by the lessee for such construction or improvement.
(b) Consistent treatment by lessor
Qualified long-term real property constructed or improved in connection with any amount excluded from a lessees income by reason of subsection (a) shall be treated as nonresidential real property of the lessor (including for purposes of section 168(i)(8)(B)).
(c) Definitions
For purposes of this section—
(1) Qualified long-term real property
The term qualified long-term real property means nonresidential real property which is part of, or otherwise present at, the retail space referred to in subsection (a) and which reverts to the lessor at the termination of the lease.
(2) Short-term lease
The term short-term lease means a lease (or other agreement for occupancy or use) of retail space for 15 years or less (as determined under the rules of section 168(i)(3)).
(3) Retail space
The term retail space means real property leased, occupied, or otherwise used by a lessee in its trade or business of selling tangible personal property or services to the general public.
(d) Information required to be furnished to Secretary
Under regulations, the lessee and lessor described in subsection (a) shall, at such times and in such manner as may be provided in such regulations, furnish to the Secretary—
(1) information concerning the amounts received (or treated as a rent reduction) and expended as described in subsection (a), and
(2) any other information which the Secretary deems necessary to carry out the provisions of this section.
(Added Pub. L. 105–34, title XII, §1213(a), Aug. 5, 1997, 111 Stat. 1000.)
Prior Provisions
A prior section 110, act Aug. 16, 1954, ch. 736, 68A Stat. 33, related to income taxes paid by lessee corporations, prior to repeal by Pub. L. 101–508, title XI, §11801(a)(6), Nov. 5, 1990, 104 Stat. 1388–520.
Effective Date
Pub. L. 105–34, title XII, §1213(e), Aug. 5, 1997, 111 Stat. 1001, provided that: The amendments made by this section [enacting this section and amending sections 168 and 6724 of this title] shall apply to leases entered into after the date of the enactment of this Act [Aug. 5, 1997].
U.S. Encyclopedia of Law Coverage
26-U.S.C.-88 in the Legal Encyclopedia: Income Taxes
In this entry about 26-U.S.C.-88, find legal reference material, bibliographies and premiere content related to income taxes in the American Encyclopedia of Law, presenting a comprehensive view of the United States income taxes-specific issues, written by authorities in the field.
26-U.S.C.-78 in the Legal Encyclopedia: Tax Liability
In this entry about 26-U.S.C.-78, find legal reference material, bibliographies and premiere content related to tax liability in the American Encyclopedia of Law, presenting a comprehensive view of the United States tax liability-specific issues, written by authorities in the field.
26-U.S.C.-84 in the Legal Encyclopedia: Taxation
In this entry about 26-U.S.C.-84, find legal reference material, bibliographies and premiere content related to taxation in the American Encyclopedia of Law, presenting a comprehensive view of the United States taxation-specific issues, written by authorities in the field.
26-U.S.C.-79 in the Legal Encyclopedia: Liability
In this entry about 26-U.S.C.-79, find legal reference material, bibliographies and premiere content related to liability in the American Encyclopedia of Law, presenting a comprehensive view of the United States liability-specific issues, written by authorities in the field.
Leave a Reply