26 USC 110 - Qualified lessee construction allowances for short-term leases

U.S Code last checked for updates: Nov 22, 2024

§ 110.

Qualified lessee construction allowances for short-term leases

(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 lessee’s constructing or improving qualified long-term real property for use in such lessee’s 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

(c)

Definitions

For purposes of this section—

(1)

Qualified long-term real property

(2)

Short-term lease

(3)

Retail space

(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.)

cite as: 26 USC 110