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IRS.gov Website
Publication 334
taxmap/pubs/p334-015.htm#en_us_publink1000313406

Items That Are Not Income(p24)

rule
In some cases the property or money you receive is not income.
taxmap/pubs/p334-015.htm#en_us_publink1000313407

Appreciation.(p24)

rule
Increases in value of your property are not income until you realize the increases through a sale or other taxable disposition.
taxmap/pubs/p334-015.htm#en_us_publink1000313408

Consignments.(p24)

rule
Consignments of merchandise to others to sell for you are not sales. The title of merchandise remains with you, the consignor, even after the consignee possesses the merchandise. Therefore, if you ship goods on consignment, you have no profit or loss until the consignee sells the merchandise. Merchandise you have shipped out on consignment is included in your inventory until it is sold.
Do not include merchandise you receive on consignment in your inventory. Include your profit or commission on merchandise consigned to you in your income when you sell the merchandise or when you receive your profit or commission, depending upon the method of accounting you use.
taxmap/pubs/p334-015.htm#en_us_publink1000313409

Construction allowances.(p24)

rule
If you enter into a lease after August 5, 1997, you can exclude from income the construction allowance you receive (in cash or as a rent reduction) from your landlord if you receive it under both the following conditions.
taxmap/pubs/p334-015.htm#en_us_publink1000313410
Amount you can exclude.(p24)
You can exclude the construction allowance to the extent it does not exceed the amount you spent for construction or improvements.
taxmap/pubs/p334-015.htm#en_us_publink1000313411
Short-term lease.(p24)
A short-term lease is a lease (or other agreement for occupancy or use) of retail space for 15 years or less. The following rules apply in determining whether the lease is for 15 years or less.
taxmap/pubs/p334-015.htm#en_us_publink1000313412
Retail space.(p24)
Retail space is real property leased, occupied, or otherwise used by you as a tenant in your business of selling tangible personal property or services to the general public.
taxmap/pubs/p334-015.htm#en_us_publink1000313413
Qualified long-term real property.(p24)
Qualified long-term real property is nonresidential real property that is part of, or otherwise present at, your retail space and that reverts to the landlord when the lease ends.
taxmap/pubs/p334-015.htm#en_us_publink1000313414

Exchange of like-kind property.(p24)

rule
If you exchange your business property or property you hold for investment solely for property of a like kind to be used in your business or to be held for investment, no gain or loss is recognized. This means that the gain is not taxable and the loss is not deductible. A common type of nontaxable exchange is the trade-in of a business automobile for another business automobile. For more information, see Form 8824.
taxmap/pubs/p334-015.htm#en_us_publink1000313415

Leasehold improvements.(p24)

rule
If a tenant erects buildings or makes improvements to your property, the increase in the value of the property due to the improvements is not income to you. However, if the facts indicate that the improvements are a payment of rent to you, then the increase in value would be income.
taxmap/pubs/p334-015.htm#en_us_publink1000313416

Loans.(p24)

rule
Money borrowed through a bona fide loan is not income.
taxmap/pubs/p334-015.htm#en_us_publink1000313417

Sales tax.(p24)

rule
State and local sales taxes imposed on the buyer, which you were required to collect and pay over to state or local governments, are not income.