FT-5 - Rents Included in the Franchise Tax Base May be Offset by Sub-Rental Receipts Under Certain Conditions

A taxpayer may offset rent reported in the franchise tax base on Schedule G by sub-rental receipts if certain conditions are met:

• The offset amount may not exceed the amount of rent paid by the taxpayer and
• The sublease must apply to the same property rented by the taxpayer and
• The sublease must grant the same rights concerning use of the property.

Reference: Tenn. Code Ann. § 67-4-2108(a)(6)(D).