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.
To ensure uninterrupted operation in the event of default, the operator agreed to transfer all daycare center assets and materials to any operator selected by the SFWMD at the unamortized cost
of original acquisition.
Section M-5C of this statement requires an adjustment to depreciation rates or the recognition of unamortized cost
as a current period loss.
In some circumstances, the good guy guaranty may even include certain non-monetary obligations (e.g., 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.
Revised carrying amounts should not exceed original carrying amounts (acquisition cost or unamortized cost
) before adjustments were made to reflect the disposal decision.
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 $$!).