Jonas owns a building that he leases to Dipper, Inc., for $5,000 per month. The owner of Dipper has been complaining about the condition of the restrooms and has proposed making improvements that will cost $24,000. Dipper’s owner is willing to pay to have the improvements made if Jonas will reduce the monthly rent on the building to $4,000 for one year. Write a letter to Jonas explaining the tax effects for Jonas of the proposal by Dipper’s owner.
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