What amount can tim deduct

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Question - Tim, a calendar-year cash basis taxpayer, rents property from Andy. On July 1, 2012, Tim pays $24,000 rent for the 24 months ending June 30, 2014. What is the amount of Tim's rent deduction for 2012?

What if Tim is required to pay only 12 months rent ($12,000) in 2012?

On December 22, 2012, Tim's entertainment business sponsored a Canadian festival in a rented auditorium at a local college. His business is responsible for cleaning up the auditorium afterwards and reinstalling seats that were removed. Since the college is closed over the holiday break, the company hired by Tim to perform these services did not begin these activities until January 2, 2013. Tim paid $1,200 for these services and uses the accrual method. What amount can Tim deduct in 2012?

Reference no: EM132000600

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