Sole proprietor is closing his store at the end of July. He's in negotiations with landlord to get out of lease. Per TTB any payments to terminate the lease are deductible business expenses.
However the landlord isn't the most cooperative and may insist on the monthly payment for the next five years. If my client can't reach an agreement with the landlord to terminate, how would these rent payments for five years be treated? Business should otherwise be completely closed by the end of the year including bank accounts.
However the landlord isn't the most cooperative and may insist on the monthly payment for the next five years. If my client can't reach an agreement with the landlord to terminate, how would these rent payments for five years be treated? Business should otherwise be completely closed by the end of the year including bank accounts.
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