2020 US Code
Title 26 - Internal Revenue Code
Subtitle A - Income Taxes
Chapter 1 - Normal Taxes and Surtaxes
Subchapter B - Computation of Taxable Income
Part III - Items Specifically Excluded From Gross Income
Sec. 110 - Qualified lessee construction allowances for short-term leases
| 26 U.S.C. § 110 (2020) |
| §110. Qualified lessee construction allowances for short-term leases |
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(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 lessorQualified 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)). (c) DefinitionsFor purposes of this section— (1) Qualified long-term real propertyThe 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— (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. |
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(Added Pub. L. 105–34, title XII, §1213(a), Aug. 5, 1997, 111 Stat. 1000.) |
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PRIOR PROVISIONS
A prior section 110, act Aug. 16, 1954, ch. 736, 68A Stat. 33, related to income taxes paid by lessee corporations, prior to repeal by Pub. L. 101–508, title XI, §11801(a)(6), Nov. 5, 1990, 104 Stat. 1388–520. EFFECTIVE DATEPub. L. 105–34, title XII, §1213(e), Aug. 5, 1997, 111 Stat. 1001, provided that: "The amendments made by this section [enacting this section and amending sections 168 and 6724 of this title] shall apply to leases entered into after the date of the enactment of this Act [Aug. 5, 1997]." |
| United States Code, 2018 Edition, Supplement 2, Title 26 - INTERNAL REVENUE CODE |
| Bills and Statutes |
| United States Code |
| Y 1.2/5: |
| Title 26 - INTERNAL REVENUE CODE Subtitle A - Income Taxes CHAPTER 1 - NORMAL TAXES AND SURTAXES Subchapter B - Computation of Taxable Income PART III - ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME Sec. 110 - Qualified lessee construction allowances for short-term leases |
| section 110 |
| 2020 |
| January 13, 2021 |
| No |
| standard |
| 104 Stat. 1388-520 111 Stat. 1000, 1001 |
| Public Law 101-508, Public Law 105-34 |
