tax memo
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Tax MemoTo:From:Date: 2nd January 2020Subject: Amounts Included in the Gross IncomeFacts:Rico has a building which he intends to lease using one of the three options at his disposal. One of them is having the tenant pay $5,000 per month. The amount is to be paid on the first of the next month. Further, the lease needs to make a $5,000 security, which is refundable at the end of the lease. In the second option, the building is rented for $55,000 for a full year. The amount is paid at the time of signing the lease. There is no security payable in this arrangement. The third option is having the lease pay $5,000 per month at the start of each month. Further, the tenant needs to make a $10,000 security deposit. The tenant needs to apply for the refund towards the end of the two months of lease...
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