Hi,

Our new landlord has given us a "tenant improvement" credit of $250,000 not cash reimbursement. My question is, when I do the deferred rent schedule , do I take into account the $250,000 credit in my calculation or is that done as a separate JE as a deduction each month to the deferred rent account (CR).

Any help will be much appreciated.

Separate JE as a deduction each month. Dr expense and credit deferred

Why would you debt expense for a credit?

Also the OP might now even be looking here anymore.

GAAP requires that incentive allowance is recorded as liability and amortized as reduction of rent expense over the lease term. The related asset is debit and depreciated in accordance with the normal depreciation policy. I hope this helps!