### Question
How is the term section 467 rental agreements defined?


### Answer
The term **section 467 rental agreements** is defined in *26 U.S.C. § 467* as the following:

> any rental agreement for the use of tangible property under which—



(A) there is at least one amount allocable to the use of property during a calendar year which is to be paid after the close of the calendar year following the calendar year in which such use occurs, or



(B) there are increases in the amount to be paid as rent under the agreement

#### Citation:
  - *26 U.S.C. § 467*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

