For the past 12 years, George Link has operated his appliance repair business out of...
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For the past years, George Link has operated his appliance repair business out of a squarefoot, groundfloor office in a fourstory commercial building called Main. Last year, George signed a fiveyear lease with Kramer Management, the owner of Main. This year, Kramer decided to convert the building into condominiums and is negotiating with all its tenants to surrender their leasehold rights and vacate their space in Main. Kramer has offered George a $ cash payment and the use of a squarefoot office in a new shopping center recently constructed by Kramer. If George accepts Kramers offer, he can use the new office rent free for months. The fair rental value of this office is $ per month. What are the tax consequences to George if he accepts Kramers offer and moves his business location?
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