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A client is about to relocate to a new office tower. The new landlord is offering large incentives to attract long-term tenants and has offered

A client is about to relocate to a new office tower. The new landlord is offering large incentives to attract long-term tenants and has offered your client a cash payment of $100,000 in order to move in. The tenant is then required to do his or her own leasehold improvements. Your client has heard from some friends that the inducement will be treated as a tax-free receipt and that the courts have accepted this position. Comment.

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