Hi
Appreciate your advice on this topic. Here is our scenario. We rented a existing restaurant from a landlord in California to build our own restaurant last year.
We then had to incur demolition cost to tear down the existing restaurant (interior walls, kitchen, concrete etc etc) to then start building our own restaurant.
This question in how do we treat the demolition cost. Is it an expense or a capital expense that has to be depreciated over the time of the lease?
Appreciate any guidance on this topic.
Thanks
Abhijit
