It's not a popular subject, but long-term care is something you should think about now in order to protect yourself and your family in the future. Only 25 percent of companies have finished their Y2K conversions and 50 percent have barely started. It's up to the companies which sponsor retirement plans to prevent Y2K problems from disturbing plan operations or distribution of benefits. In the current burgeoning economic climate, many law firms, as well as their clients, are finding the need to expand and, therefore, are negotiating leases for new or additional space. When Stanley Chrein first meets with a law firm, he asks the simple question of whether or not the law firm is achieving its full potential as a business.
Leasehold inducements come with various tax consequences.
Cash paid by a landlord to a new tenant generally constitutes taxable income. Some inducements provide for an offsetting tax deduction. While monies paid to reimburse moving costs are taxable, the moving expense is a current deduction. The costliest inducement for the lessee, however, if not properly handled, is a build out allowance. When taking on new space, renovations or capital improvements can cost thousands or even millions of dollars.