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On the cash basis, you report on Schedule E the actual amount of cash received during the year. With a triple net lease, the lessor is responsible for paying certain expenses. If the lessor pays them directly, the is no effect on your tax return. However, if the lessor pays you for those expenses, and then you pay the actual expense, then you would include the amount received from the lessor as income and then you would deduct the expenses for insurance, property taxes, etc. on your schedule E. That way, you can deduct those expenses and you are only taxed on the income that is left after expenses.
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great, thanks, XXXXX XXXXX in calendar year 2011 triple net payments received (in addition to lease income) was $50,000
in calendar year 2011 there were no payments for property taxes, insurance, etc
so, the entire $50,000 is income for a cash basis taxpayer?