Sentences with phrase «over the lease term»

Although the rent is ordinary income to the landlord, it is spread over the lease term with the landlord having a depreciation deduction to offset the rental income.

The buyer also bears the risk that the property value actually might decline over the lease term.

While other manufacturers report the full price of a leased car as revenue because the car is sold to a dealer before it is leased, Tesla reports revenue over the lease term because it does not have a traditional dealer network.

Turning to accounting for operating leases — another area of some confusion - the rental under an operating lease should be charged on a straight - line basis over the lease term unless there are reasons to believe that some other more systematic and rational basis is more appropriate.

Litigation involving architecture usually involves some failure in the construction process, a dispute over lease terms like sight lines or common areas, an insurance claim involving an allegedly negligent design, or the responsibility for a building damaged in a natural disaster.

Instead, for such leases the lessor should continue to recognize the underlying asset and recognize lease income over the lease term.»

In fact, the rent might actually go down over the lease term because the entity amortizes tenant improvements.

«The problem is that while growing technology tenants would prefer short - term leases, and even if landlords wanted to concede term length, the historic highs of rental rates, coupled with the increased regulation and costs of construction, mean that the dollar outlay can not be amortized over lease terms that are so short.

However, the seller would be entitled to depreciation on its basis for the leasehold over the lease term.

The buyer in a sale - leaseback reports rental payments as ordinary income as they are received over the lease term.

FASB continues to want two classifications, where type A (capital lease) will be treated as a financial arrangement and type B (operating lease) will be treated as a straight line expense over the lease term.