William owns a building that is leased to Lester’s Machine Shop. Lester requests that William rewire the building for new equipment Lester plans to purchase. The wiring would cost about $4,000, but would not increase the value of the building because its only use is in connection with the specialized equipment. Rather than lose Lester as a lessee, William agrees to forego one month’s rent of $1,000 if Lester will pay for the wiring. Because Lester does not want to move, he agrees. William has asked you, as his CPA, what amount, if any, he will have to include in his gross income?
A partial list of research sources is:
Sec. 109
Reg. Sec. 1.109-1
CIR v. Grace H. Cunningham, 2 AFTR 2d 5511, 58-2 USTC 9771 (9th Cir., 1958)
Rubric for Tax Research Problems
The paper’s discussion is relevant to the Research Problem given. The sources discussed in the paper are relevant to the issue.
The first paragraph of the paper is the issue from the textbook and/or canvas. This paragraph lists the resources given.
The paper contains a discussion of EACH resource given. The paper relates each source to the issue. The analysis is sufficient to support the paper’s conclusion.
The conclusion is written in complete paragraph form. The conclusion answers the question(s) proposed in the identification and provides support for the conclusion.
Paper is free from grammatical errors.