Ask Experts Questions for FREE Help !
Ask
    johndwilburn's Avatar
    johndwilburn Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Oct 12, 2009, 01:13 PM
    Tenant Finish Construction Costs & Capitalization
    Do tenant finish construction costs need to be capitalized? i.e. the tenant that paid for the improvement of the property does not OWN the property that was improved. Thank you.
    rehmanvohra's Avatar
    rehmanvohra Posts: 739, Reputation: 27
    Senior Member
    		  
    #2

    Oct 13, 2009, 12:11 AM
    Quote Originally Posted by johndwilburn View Post
    Do tenant finish construction costs need to be capitalized? i.e. the tenant that paid for the improvement of the property does not OWN the property that was improved. Thank you.
    If the tenant acted at the request of the owner, then yes it can be capitalized. The costs incurred by the tenant may be reimbursed or adjusted from rent payments as may be agreed between the tenant and the owner.

    If the tenant has acted on his own to make amendments to the property without the prior written consent of the owner, it can not be capitalized, Rather, the tenant will have to restore the property to its original condition when the tenant leaves.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How To Claim Deduction for Rental Property Costs While It's Under Construction [ 4 Answers ]

I purchased a property in May of 2006, it took 18 months to fix it up and it was not "placed in service" rented until January of 2008. It is my understanding that I can not claim depreciation for the 18 months where it was unavailable for rent. I believe I can add the cost of the improvements...

Do you know a resource that states what average construction costs are in US? [ 2 Answers ]

I'm looking for a resource or report or statistics that might show either regional or by-state costs or average U.S. costs for construction materials and labor and if/how much the costs have risen from January 2008 to June 2008 (whether it be because of prices of gas, shortages, regulations...

Construction costs [ 3 Answers ]

I am building a home on a cost basis. The cost for my foundation was 2x the estimated cost. The builder is blaming the cost of concrete. The basement was poured in March and the contract was signed 3 months prior. Did the cost of contrete go up 100% in that time? Thank you

View more questions Search