Discussion:Accounting for lease buyout
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Discussion Forum Index --> Accounting Questions --> Accounting for lease buyout
| 31 March 2007 | |
| Hi,
I have a question I would like to ask. My company had four years remaining on a lease for space in a strip mall. We bought our way out of the lease for $140,000. How do I account for this? Is it a one time write off as an expense? Thanks!! | |
| 3 April 2007 | |
| Did the 140K include any sales tax for lease of commercial property? Depending on the state, some of this money may be considered lease income and then you would pick that amount up as lease expense. What does the contract say about terminating the lease and what you will be paying for as part of the 140K? | |
| April 2, 2007 | |
| Sandy posted this at 2:00 two days from now, and it's still showing that it was posted one minute ago. There have been no new posts for a few hours. Where is everyone?
This is a test. | |
| 2 April 2007 | |
| Thanks for the response. There was nothing in the lease concerning any taxes. The amount I paid was a negotiated amount to be released from the remaining term of the lease.
thanks. | |
Bottom Line (talk|edits) said: | 2 April 2007 |
| Deb - I had the same problem yesterday. Looked like the site was down. I originally thought it was an April Fools joke by Tim but based on some of his comments I'm wondering if it was a hack. | |
| 2 April 2007 | |
| This will be picked up as ordinary income/expense then I would assume. If there is no liability on your books or the books of the lessor, then this will be considered current expenses.... | |
| April 3, 2007 | |
| BL - Tim explained in one of the threads that it was a date error on two of the servers. One was set for July 7 and the other was set for April 3. I can't remember what he said about why the dates were wrong, but he got it fixed soon afterwards. | |
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