This website requires Javascript to function properly. Please go to the setting of your web browser and enable Javascript for this website.

Ad by

技多不压身，工到自然成：安省技工证书特训班，点击咨询报名！

Ad by

技多不压身，工到自然成：安省技工证书特训班，点击咨询报名！

Lease inducements: Accounting Treatment and Tax Implications

homedream(古风)

1.. Two methods for your accounting treatment in you case, either is acceptable;

a. Dr. Cash 100K
Cr. Leasehold improvment 100K

The lease inducement is used to net against the cost of leasehold improvement. Your leasehold improvement is now 50k which is the basis for depreciation.
This method would be direct.

b. Set up the "Lease inducements" for the 100K received and amortized over the lease term.

2. Tax treatment is different:

For tax purpose, lease inducements are fully taxable in the year they are received.

If the taxpayer wants to use the inducements received to net against the leasehold, an election must be send to CRA which is due on the same date as the income tax return.

(#75714@41)
Last Updated: 2013-9-27

Replies, comments and Discussions:

如果landlord付给租房子的公司100K装修，公司装修实际花了150K，怎样记录这笔钱？thx -newhouse(DAY DREAM); 2013-9-25 (#75611@41) +1

dr leasehold improvement 150 cr loan to landlord 100 cr cash 或者其他来钱的地 50 -assistant(Assistant); 2013-9-25 (#75640@41)
如果是我，拿到100k的时候，dr。cash，cr lease inducement （amortized over the lease term），装修的时候，dr asset或者expense（或者其他，看这个钱的natural），cr,cash 150.具体要看这个100k的条件是什么，可能有比lease inducement更合适的地方。 -criss(criss); 2013-9-25 (#75644@41)

你是在做tenant的账吧？他也可能问的是房东方怎么记账哦。要不你两套账都做了吧？：） -pingle(苹果); 2013-9-25 (#75646@41)

如果是lanlord的话，就100k，别人花了多少没关系。dr rev cr.cash,具体rev怎么做也要看这个100k怎么给，为什么给，有什么条件。 -criss(criss); 2013-9-25 (#75649@41)
我就是问tenant怎么做？amortize 的时候就是Dr. lease inducement Cr. lease improvement armotization? -newhouse(DAY DREAM); 2013-9-25 (#75660@41)

amortization account是contra account，只和对应的asset”关联“，你可以cr，rent exp，或者别的更合适的exp acct，这个要看你的agreement，如果公司不做ifrs，就不那么严格，ifrs的，你可以和你的supervisor讨论一下。 -criss(criss); 2013-9-26 (#75669@41)

公司不做ifrs -newhouse(DAY DREAM); 2013-9-26 (#75675@41)

随便放一个你觉得合适的就可以了 -criss(criss); 2013-9-26 (#75678@41)

Lease inducements: Accounting Treatment and Tax Implications -homedream(古风); 2013-9-27 {800} (#75714@41)
1.. Two methods for your accounting treatment in you case, either is acceptable;

a. Dr. Cash 100K
Cr. Leasehold improvment 100K

The lease inducement is used to net against the cost of leasehold improvement. Your leasehold improvement is now 50k which is the basis for depreciation.
This method would be direct.

b. Set up the "Lease inducements" for the 100K received and amortized over the lease term.

2. Tax treatment is different:

For tax purpose, lease inducements are fully taxable in the year they are received.

If the taxpayer wants to use the inducements received to net against the leasehold, an election must be send to CRA which is due on the same date as the income tax return.

Thx -newhouse(DAY DREAM); 2013-9-27 (#75725@41)

@Las Vegas

Lease inducements: Accounting Treatment and Tax Implications

Replies, comments and Discussions:

More Topics