Share this content
1

Capitalise electricity connection on 2 year lease

Capitalise cost of electricity connection on 2 year lease?

Didn't find your answer?

Could anyone advise me if it is appropriate to capitalise the costs of connecting electricity to a rented building - cost is 7.5K - when the building is on a 2 year lease?

Replies (1)

Please login or register to join the discussion.

avatar
By paul.benny
11th Oct 2019 17:15

You could capitalise and depreciate over the two years of the lease.

To justify a longer depreciation period, you'd need some evidence that either the lease will be extended or that the landlord will reimburse part of the cost if the tenant vacates at the end of the two year period.

Thanks (1)
Share this content