If the landlord provides a cash allowance to the tenant for the tenant to construct improvements it will own and use this cash payment will constitute immediately taxable income to the tenant. If you meet certain conditions you may exclude the first 250 000 of gain from the sale of your home from your income and avoid paying taxes on it. Purchased a patent on a production process for 250 000 and has amortized 91 000 of the cost.
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