Revenue specified under income tax law as assessable income includes:
- interest on any overpayment of federal tax
- amounts received from a lessee or former lessee for failing to comply with a lease obligation to make repairs to the premises you leased to them to run a business.
Example: Assessable amount for failing to comply with lease
The Viridian Club leases part of its premises for two years to an individual to operate a gym. The lease contract includes an obligation for the gym operator to repair and maintain the leased premises.
After one year, the leased premises needed some repair work. When the lease ended, the club charged the gym operator an amount agreed under the contract for failing to comply with his obligation to carry out the repairs.
The agreed amount the club received from the gym operator is assessable income.
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