The lease on the land should be amortized over the life of the lease(99 years).I suppose it depends on the terms of the lease. I think there's a case (Lyon v. Commissioner IIRC, but I could be wrong) that specifically deals with long-term leases. I assumed that a 99 year lease is the functional equivalent of a purchase, and considered purchased land not depreciable. If the lease is really a lease, and not a disguised sale, then I agree with WPatch that the lease can be amortized. The terms of the lease would indicate over what term to amortize it.--Peter
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar<