If the landlord provides a cash allowance to the tenant for the tenant to construct improvements it will own and use this cash payment will constitute immediately taxable income to the tenant. If the business has employees the business must of course make any final federal tax deposits covering payroll taxes and file a final form 941 employer s quarterly federal tax return. 2 in determining whether the taxpayer sustained a loss with respect to costs incurred in relation to the first plan the irs focused its analysis on the question of.
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