In order to protect against rent increases on the building in which she operates a dance studio, Mella signs an 18- month lease for $36,000. The lease commences on October 1, 2018. How much of the $36,000 payment can she deduct in 2018 and 2019?
a. If Mella is an accrual basis taxpayer?
b. If Mella is a cash basis taxpayer?

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The Answer of In order to protect against rent increases on the building in which she operates a dance studio, Mella signs an 18- month lease for $36,000. The lease commences on October 1, 2018. How much of the $36,000 payment can she deduct in 2018 and 2019?
a. If Mella is an accrual basis taxpayer?
b. If Mella is a cash basis taxpayer?

In Order to Protect Against Rent Increases on the Building