§110 — Qualified lessee construction allowances for short-term leases
33 cases·1 distinguished·2 overruled·30 cited
Statute Text — 26 U.S.C. §110
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—
under a short-term lease of retail space, and
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.
Qualified long-term real property constructed or improved in connection with any amount excluded from a lessee’s 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)).
For purposes of this section—
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.
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)).
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.
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—
information concerning the amounts received (or treated as a rent reduction) and expended as described in subsection (a), and
any other information which the Secretary deems necessary to carry out the provisions of this section.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §1.110-1 Qualified lessee construction allowances
- Treas. Reg. §Treas. Reg. §1.110-1(a) Overview.
- Treas. Reg. §Treas. Reg. §1.110-1(b) Qualified lessee construction allowance—(1) In general.
- Treas. Reg. §Treas. Reg. §1.110-1(c) Information required to be furnished—(1) In general.
- Treas. Reg. §Treas. Reg. §1.110-1(d) Effective date.
- Treas. Reg. §Treas. Reg. §1.110-1(i) §1.110-1(i)
33 Citing Cases
On opening brief, petitioners state, in pertinent part, as follows: IRC § 110 (a) states: “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 re
eform Act of 1998, Pub. L. 105-206, secs. 3505 and 3711(c)(1), 112 Stat. 771, 781; Balanced Budget Act of 1997, Pub. L. 105-33, sec. 5514(a)(1), 111 Stat. 620; Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Pub. L. 104-193, sec. 110(1)(7) (A), 110 Stat. 2173; Deficit Reduction Act of 1984, Pub. L. 98-369, sec. 2653(b)(2), 98 Stat. 1155; Omnibus Budget Reconciliation Act of 1981, Pub. L. 97-35, sec. 2331(c)(1), 95 Stat. 861; and Tax Reform Act of 1976, Pub. L. 94-455, se
43, §110 A.1.e (West Cum. Supp. 1999), which vests Oklahoma courts with the authority to issue temporary orders regarding attorney’s fees in divorce actions.3 In conjunction with this provision, Okla. Stat. Ann. tit. 43, §110 B. (West Cum. Supp. 1999), provides in pertinent part: 3 Okla. Stat. Ann. tit. 43, §110A.1.e (West Cum. Supp. 1999), provides in
for a stated sales price of $200,000, the partnership sold Store 5 and the videos associated with Store 5. The partnership's total cost basis in the assets of Store 5 equaled $288,239. The sale took the form of an installment sale 3 Generally, under sec. 110, for leases entered into after Aug. 5, 1997, funds received by tenants in reimbursement from landlords for improvements to certain buildings leased under short-term leases are treated as nontaxable income to the tenants. - 12 - under which t