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please show work Maud, a calendar year taxpayer, is the owner of a sole proprietorship that...

please show work

Maud, a calendar year taxpayer, is the owner of a sole proprietorship that uses the cash method. On February 1, 2018, she leases an office building to use in
her business for $120,000 for an 18-month period. To obtain this favorable lease rate, she pays the $120,000 at the inception of the lease. How much rent expense may Maud deduct on her 2018 tax return?

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Answer #1

Solution:

Under cash method, expenses are allowed to be deducted when cash is pad for the expense irrespective of their accrual.

Since Maud uses the cash method, she can deduct the total rent amount paid of $120,000 on her 2018 tax return.

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