[RPPTL LandTen] Question on Capital Expenses

[David Weisman]

I have often seen CAM including the annual expense of the capital improvement amortized over its useful life based upon a straight line depreciation schedule.

Another concept is to exclude them, except for amortized portion of capital improvements installed for the purpose of reducing or controlling Operating Expenses or complying with applicable Laws.

David  Weisman
Board Certified Real Estate Lawyer
Greenspoon Marder, P.A.
200 E. Broward Blvd., Suite 1800
Fort Lauderdale, FL 33301
Phone 954-491-1120 Ext. 1015
Direct Phone 954-343-6941

David.Weisman at gmlaw.com<mailto:David.Weisman at gmlaw.com>
www.GMlaw.com<http://www.gmlaw.com/>

[gm-horizontal-bw_nolaw2 (2)]

From: landten-bounces at lists.flabarrpptl.org [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of Law Offices of Scott A. Frank P.A
Sent: Thursday, September 15, 2016 11:03 PM
To: 'RPPTL Landlord Tenant Committee'
Subject: [RPPTL LandTen] Question on Capital Expenses

All:

I am presently having a debate with a  client regarding capital repairs/replacements/improvements in a NNN lease for an office building.  The lease lists CAM components, with standard "includes but is not limited to . . .".  But the list neither includes nor excludes capital expenses explicitly.

So do you think the Landlord can pass these expenses through?  And does your opinion differ if the expense relates to a capital replacement/repair versus a capital improvement?

As always, thank you for your input.



Scott A. Frank
Attorney at Law

LAW OFFICES OF SCOTT A. FRANK, P.A.
5301 N. Federal Highway, Suite 170
Boca Raton, FL 33487
p:  (561) 826-5400
f:  (561) 423-5721
sfrank at saflaw.com<mailto:sfrank at saflaw.com>

[https://www.starslink.com/assets/AuthorizedAgentBadge.png]

If you believe that you have received this message in error, please notify the sender by reply transmission and delete the message without copying or disclosing it.

Pursuant to Internal Revenue Service guidance, be advised that any federal tax advice contained in this written or electronic communication, including any attachments or enclosures, is not intended or written to be used and it cannot be used by any person or entity for the purpose of (i) avoiding any tax penalties that may be imposed by the Internal Revenue Service or any other U.S. Federal taxing authority or agency or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.


-- 
The information contained in this transmission may be attorney/client 
privileged and confidential. It is intended only for the use of the 
individual or entity named above. If the reader of this message is not the 
intended recipient, you are hereby notified that any dissemination, 
distribution or copying of this communication is strictly prohibited. If 
you have received this communication in error, please notify us immediately 
by reply e-mail.

Unless specifically indicated otherwise, any discussion of tax issues 
contained in this e-mail, including any attachments, is not, and is not 
intended to be, ''written advice'' as defined in Section 10.37 of Treasury 
Department Circular 230.

A portion of our practice involves the collection of debt and any 
information you provide will be used for that purpose if we are attempting 
to collect a debt from you.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20160916/0356d9b3/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.jpg
Type: image/jpeg
Size: 3112 bytes
Desc: image002.jpg
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20160916/0356d9b3/image002-0001.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image003.png
Type: image/png
Size: 14016 bytes
Desc: image003.png
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20160916/0356d9b3/image003-0001.png>