Items That Are Not Income In some cases the property or money you receive is not income. Loans.Money borrowed through a bona fide loan is not income. Appreciation.Increases in value of your property are not income until yourealize the increases through a sale or other taxable disposition. Leasehold improvements.If a tenant erects buildings or makes improvements to yourproperty, the increase in the value of the property due to theimprovements is not income to you. However, if the facts indicate thatthe improvements are a payment of rent to you, then the increase invalue would be income. Exchange of property for like property.If you exchange your business property or property you hold forinvestment solely for property of a like kind to be used in yourbusiness or to be held for investment, no gain or loss is recognized.This means that the gain is not taxable and the loss is notdeductible. A common type of nontaxable exchange is the trade-in of abusiness automobile for another business automobile. SeeNontaxable exchanges in chapter 3. Consignments.hotels MailandConsignments of merchandise to others to sell for you are notsales. The title of merchandise remains with you, the consignor, evenafter the consignee possesses the merchandise. Therefore, if you shipgoods on consignment, you have no profit or loss until the consigneesells the merchandise. Merchandise you have shipped out on consignmentis included in your inventory until it is sold. Do not include merchandise you receive on consignment in yourinventory. Include your profit or commission on merchandise consignedto you in your income when you sell the merchandise or when youreceive your profit or commission, depending upon the method ofaccounting you use. Construction allowances.If you enter into a lease after August 5, 1997, you can excludefrom income the construction allowance you receive (in cash or as arent reduction) from your landlord if you receive it under both thefollowing conditions. Under a short-term lease of retailspace. For the purpose of constructing or improving qualifiedlong-term real property ERROR MSGfor use in your business at that retailspace. Amount you can exclude.ERROR MSGYou can exclude the construction allowance to the extent that itdoes not exceed the amount you spent for construction or improvements. Short-term lease.A short-term lease is a lease (or other agreement for occupancy oruse) of retail space for 15 years or less. The following rules applyin determining whether the lease is for 15 years or less. Take options to renew into account when figuring whether thelease is for 15 years or less. But do not take into account any optionto renew at fair market value determined at the time ofrenewal. five star hotel in MechelenTwo or more successive leases that are part of the sametransaction (or a series of related transactions) for the same orsubstantially similar retail space are treated as one lease. Retail space.Retail space is real property leased, occupied, or otherwise usedby you as a tenant in your business of selling tangible personalproperty or services to the general public. Qualified long-term real property.tariffe basse negli alberghi di SarvarQualified long-term real property is nonresidential real propertythat is part of, or otherwise present at, your retail space and thatreverts to the landlord when the lease ends.