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Tinkrytine
Returning Member

Indian Land lease renewal fees on rental property

I own a rental property on Indian land and the lease was just renewed. I paid $4000 for the renewal fee to the land owners and a $750 processing fee to the Bureau of Indian Affairs. Can these be expensed or should they be depreciated? If depreciated would it be for the remaining life of the property or over the number of years added to the lease?

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1 Reply
ToddL99
Expert Alumni

Indian Land lease renewal fees on rental property

The $4000 renewal fee was associated with renewing (extending) the lease - amortize it over the number of years added to the lease. 

 

The processing fee (to Bureau of Indian Affairs) is similar to a license or a tax -  expense it in the year paid. 

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