The petitioner built a commercial building and entered into a 10-year lease with the lessee. Under the terms of the lease, monthly rent payments were to be paid but the lessee could make a one-time payment to the petitioner which could be used in calculating rent and thereby reduce the amount owed under the lease. A $1 million payment was made and the IRS claimed that the petitioner should have reported it as income. The petitioner claimed that the amount was a reimbursement of construction costs or, if it was rental income, could be reported over the life of the lease. The Tax Court agreed with the IRS that the amount was rental income that was to be fully reported in the year received under I.R.C. Sec. 467. The rental agreement did not specify any specific allocation of fixed rent. Thus, the rent allocated to a rental period is the amount of fixed rent payable during that rental period. The constant rental accrual and proportional rental accrual methods were inapplicable to the lease at issue. Stough v. Comr., 144 T.C. No. 16 (2015).