Leasing of real property is a commonplace commercial transaction. Given the breadth of commercial dealings it should not be surprising that such activities give rise to a myriad of tax issues. This presentation revisits the various tax issues arising in leasing real property. It also considers the planning associated with achieving optimal commercial outcomes from both a lessor and lessee's perspective. Specific topics include:
- legal nature of a commercial lease
- key terms and statutory issues
- tenants fixtures and improvements
- tax issues with lease premium and surrender payments
- lease incentives - landlord and tenant tax issues.