Quitting a Lease

[HotRod]

Question:

If you have a lease in place over a property and the term is for say two years and the lessee decides to break the lease half-way through and then pay out the balance, is the the money received considered rent?

Got a feeling it would be.

 

[thatbum]

Depends in what context you mean? For tax? Probably, but I'm not sure actually.

I'm confused about why a lessee would pay out the rest of the lease in a break lease situation as well.

 

[HotRod]

Depends in what context you mean? For tax? Probably, but I'm not sure actually.

I'm confused about why a lessee would pay out the rest of the lease in a break lease situation as well.

Yes, for tax purposes.

I'm confused too.

Hence the question and the implications.