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Business Definition for: ground rent
ground rent
the rent earned by leased land. Ground rent received is taxable as ordinary income when received. If the lease is considered a financing device, portions of the rent may be treated as interest, gain, and nontaxable recovery of investment. If ground rent is a financing device, it is treated as a mortgage payment.
ground rent
the rent earned by leased land.
Example: The Good Title Company owns an office building situated on a site owned by the Widget Makers Retirement Fund. The site is leased to Good Title on a long-term basis and requires the payment of ground rent to the Widget Makers Retirement Fund on a semiannual basis.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
