The landlord may not recover the
unamortized cost of tenant improvements paid for by the landlord.
Instead, the taxpayer adds the
unamortized cost to the adjusted basis of retained intangibles (Sec.
If a tenant had a five year lease and left at the end of three years, he would pay any
unamortized cost.
For acquired film libraries, an entity must disclose the amount of
unamortized cost that remains, the method of amortization, and the amortization period being used.
unperformed repair obligations) or require the guarantor to reimburse the landlord for transaction costs in connection with the lease, including the
unamortized cost of rent concessions, leasing commissions or tenant improvement allowances.
Although desirable, cancellation options are usually granted only to larger tenants since landlords typically want to lock in their tenants for as long as possible; they normally require the tenant to pay the
unamortized cost of the build-out, free rent and brokerage commissions plus some part of the remaining rent.
If the partnership completely disposes of the trade or business for which the costs are incurred (in the case of startup expenses) or liquidates (in the case of organizational expenses) before the 180-month period ends, any
unamortized costs are deductible at the time of the disposition or liquidation.
But they chose to amortize the retrofit of the space over 10 years, pledging to pay all
unamortized costs if they do not renew after the initial seven-year term (which is big $$
The company, Centre Tech III, had requested $13,582 to pay for
unamortized costs of refinishing the property and the unamortized balance of a real estate commission.
2 million impairment expense reflects
unamortized costs associated with the acquisition, development and implementation of the system.
