Dictionary of Business Terms: 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.
Dictionary of Real Estate Terms: ground rent
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.
