That´s No Incentive

In the current economic climate, the heady days of low vacancy rates and high rents may be drawing to a close. As times get tougher, the lease incentive is likely to increase in popularity as landlords compete for tenants.

There can be large differences in the way that different types of incentives are treated for tax purposes. If you are a tenant, you will want to make sure you are getting your money's worth by structuring the incentive in the most tax effective way. Landlords will also want to maximise their tax benefits. The trick is finding the best structure for the particular deal.

Incentives can take many forms. Some of the most common ones are:

Rent Abatements

For a tenant, a rent free or reduced rent period is often a good option as it is effectively tax free.