Treasury Regulations (26 C.F.R.)
26 CFR § 1.162-11
Rentals.
# (a) Acquisition of a leasehold.
If a leasehold is acquired for business purposes for a specified sum, the purchaser may take as a deduction in his return an aliquot part of such sum each year, based on the number of years the lease has to run. Taxes paid by a tenant to or for a landlord for business property are additional rent and constitute a deductible item to the tenant and taxable income to the landlord, the amount of the tax being deductible by the latter. For disallowance of deduction for income taxes paid by a lessee corporation pursuant to a lease arrangement with the lessor corporation, see section 110 and the regulations thereunder. See section 178 and the regulations thereunder for rules governing the effect to be given renewal options in amortizing the costs incurred after July 28, 1958 of acquiring a lease. See § 1.197-2 for rules governing the amortization of costs to acquire limited interests in section 197 intangibles.
# (b)
Improvements by lessee on lessor's property—(1) In general. The cost to a taxpayer of erecting buildings or making permanent improvements on property of which the taxpayer is a lessee is a capital expenditure. For the rules regarding improvements to leased property when the improvements are tangible property, see § 1.263(a)-3(f). For the rules regarding depreciation or amortization deductions for leasehold improvements, see § 1.167(a)-4.
(2) Effective/applicability date—(i) In general. This paragraph (b) applies to taxable years beginning on or after January 1, 2014. Except as provided in paragraphs (b)(2)(ii) and (b)(2)(iii) of this section, § 1.162-11(b) as contained in 26 CFR part 1 edition revised as of April 1, 2011, applies to taxable years beginning before January 1, 2014.
(ii) Early application of this paragraph. A taxpayer may choose to apply this paragraph (b) to taxable years beginning on or after January 1, 2012.
(iii) Optional application of TD 9564. A taxpayer may choose to apply § 1.162-11T(b) as contained in TD 9564 (76 FR 81060) December 27, 2011, to taxable years beginning on or after January 1, 2012, and before January 1, 2014.
[T.D. 6520, 25 FR 13692, Dec. 24, 1960, as amended by T.D. 8865, 65 FR 3825, Jan. 25, 2000; T.D. 9564, 76 FR 81084, Dec. 27, 2011; T.D. 9636, 78 FR 57706, Sept. 19, 2013 ]
Source: view the official text
In this part (40 sections)
- 1.151-2 · Additional exemptions for dependents.
- 1.151-3 · Definitions.
- 1.151-4 · Amount of deduction for each exemption under section 151.
- 1.152-1 · General definition of a dependent.
- 1.152-2 · Rules relating to general definition of dependent.
- 1.152-3 · Multiple support agreements.
- 1.152-4 · Special rule for a child of divorced or separated parents or…
- 1.153-1 · Determination of marital status.
- 1.154 · Statutory provisions; cross references.
- 1.161-1 · Allowance of deductions.
- 1.162-1 · Business expenses.
- 1.162-2 · Traveling expenses.
- 1.162-3 · Materials and supplies.
- 1.162-4 · Repairs.
- 1.162-5 · Expenses for education.
- 1.162-7 · Compensation for personal services.
- 1.162-8 · Treatment of excessive compensation.
- 1.162-9 · Bonuses to employees.
- 1.162-10 · Certain employee benefits.
- 1.162-10T · Questions and answers relating to the deduction of employee…
- 1.162-11 · Rentals.
- 1.162-12 · Expenses of farmers.
- 1.162-13 · Depositors' guaranty fund.
- 1.162-14 · Expenditures for advertising or promotion of good will.
- 1.162-15 · Contributions, dues, etc.
- 1.162-16 · Cross reference.
- 1.162-17 · Reporting and substantiation of certain business expenses of…
- 1.162-18 · Illegal bribes and kickbacks.
- 1.162-19 · Capital contributions to Federal National Mortgage…
- 1.162-20 · Expenditures attributable to lobbying, political campaigns,…
- 1.162-21 · Denial of deduction for certain fines, penalties, and other…
- 1.162-22 · Treble damage payments under the antitrust laws.
- 1.162-24 · Travel expenses of state legislators.
- 1.162-25 · Deductions with respect to noncash fringe benefits.
- 1.162-25T · Deductions with respect to noncash fringe benefits…
- 1.162-27 · Certain employee remuneration in excess of $1,000,000 not…
- 1.162-28 · Allocation of costs to lobbying activities.
- 1.162-29 · Influencing legislation.
- 1.162-31 · The $500,000 deduction limitation for remuneration provided…
- 1.162-32 · Expenses paid or incurred for lodging when not traveling…