Make Your Next Office Move Your Best Move!

Should Building Repairs Be Included In Operating Expenses?

 
 

office building repairsBuilding repairs and maintenance are usually categorized as current expenditures and are charged to tenants as operating expenses. A repair or a replacement of parts or equipment which is substantial may be considered a capital expense if it has a useful life or more than one year, is material in value and extends the useful life of the building.

Capital expenses are part of the cost of ownership to the landlord and typically are not passed through to tenants.

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