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Business, 05.12.2019 00:31 valdezlizbeth6652

Vernon is a cash basis taxpayer with a calendar tax year. on october 1, 2018, vernon entered into a lease to rent a building for use in his business at $3,000 a month. on that day vernon paid 18 months' rent on the building, a total of $54,000 ($3,000 × 18 months). how much may vernon deduct for rent expense on his 2018 tax return?

a.$54,000

b.$0

c.$12,000

d.$36,000

e. none of these choices are correct.

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