accommodation in GlasgowIf you lease business property, you can deduct as additional rentany taxes that you have to pay to or for the lessor. When you candeduct these taxes as additional rent depends on your accountingmethod. Cash method.If you use the cash method of accounting, you can deduct the taxesas additional rent only for the tax year in which you pay them. Accrual method.If you use an accrual method of accounting, you can deduct taxes asadditional rent for the tax year in which you can determine all of thefollowing. - That you have a liability for taxes on the leasedproperty.
- How much the liability is.
- keno estrategiaThat economic performance occurred.
The liability and amount of taxes are determined by state or locallaw and the lease agreement. Economic performance occurs as you usethe property. Example.Oak Corporation is a calendar year taxpayer that uses an accrualmethod of accounting. Oak leases land for use in its business. Understate law, owners of real property become liable (incur a lien on theproperty) for real estate taxes for the year on January 1 of thatyear. However, they do not have to pay these taxes until July 1 of thenext year (18 months later) when tax bills are issued. This means thatproperty owners become liable for real estate taxes for a year onJanuary 1 of that year, but do not have to pay them until July 1 ofthe next year. Under the terms of the lease, Oak becomes liable for the realestate taxes when the tax bills are issued. Oak cannot deduct the realestate taxes as rent until the tax bill is issued. This is when Oak'sliability under the lease becomes fixed. If, according to the terms of the lease, Oak is liable for the realestate taxes when the owner of the property becomes liable for them,Oak will deduct the real estate taxes as rent on its tax return forthe earlier year. This is the year in which Oak's liability under thelease becomes fixed. | 
