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Leasing commission amortization

Technical topics regarding tax preparation.
#1
Keyad22  
Posts:
622
Joined:
13-Jun-2016 9:51am
Location:
Bay Area, California
Hello Pros,

TP has commercial buildings in the rental business. The total commission paid to real estate agent or broker year-to date is over 300K. Most leases are about 3-5 years. Traditionally, we will capitalized commission and amortized it over the term of lease unless the lease is under 1 year or the commission is under $5K. However, this year the paid commission is over 300K. Just want to check with every pro, are there any changes about the leasing commission amortization rules? If there is not, we have to stick on the one year or 5K rules.

Thank you,
 

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