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RPPTL Real Estate Leasing Committee

[RPPTL LandTen] Question on Capital Expenses

Law Offices of Scott A. Frank P.A

Fri, Sep 16, 2016 3:02 AM

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

mailto:sfrank@saflaw.com sfrank@saflaw.com

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.

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 <mailto:sfrank@saflaw.com> sfrank@saflaw.com 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.

Charles Levin

Fri, Sep 16, 2016 10:38 AM

To start, Please send me the page with definition of CAM and the page with responsibilities for repair.

Thank you,

Charles J. Levin
Attorney at Law
Post Office Box x-apple-data-detectors://14/0 2316
Oldsmar, FL 3x-apple-data-detectors://14/04677
Telephone 813-963-5135tel:813-963-5135

CONFIDENTIALITY NOTICE: Information contained in this e-mail transmission is privileged, confidential and protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521. If you are not the intended recipient, do not read, distribute, or reproduce this transmission. If you have received this e-mail transmission in error, please notify the sender immediately by return e-mail, delete the message, and return any hard copy print-outs. No legal advice is being provided or implied via this e-mail transmission unless you are a client of the sender and an intended recipient. If you properly received this e-mail as a client, co-counsel or retained expert of Charles J. Levin, P.A., you should maintain its contents in confidence in order to preserve the attorney-client or work product privilege that may be available to protect confidentiality. CIRCULAR 230 DISCLOSURE: Any advice contained in this e-mail transmission (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on any taxpayer.

NOT BINDING: Anything in this email or attachments to the contrary notwithstanding, reference to terms and conditions relating to the subject matter in this, previous and subsequent emails and attachments are for ongoing non-binding discussions and negotiations only and do not constitute an agreement or an offer to enter into an agreement. The submission of imbedded or attached documents shall not support a claim of promissory estoppel or reliance. Neither party shall have any obligation to negotiate the terms of a possible agreement and may withdraw from negotiations at any time for any reason or for no reason without liability to the other party. Terms and conditions are strictly "subject to contract" and are not binding on the writer or clients until a single formal written contract has been completed and a paper document has been signed and delivered by all parties. No emails, attachments or facsimile versions of any document or any oral statements will be binding.

On Sep 15, 2016, at 11:06 PM, Law Offices of Scott A. Frank P.A <sfrank@saflaw.com mailto:sfrank@saflaw.com> wrote:

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@saflaw.com mailto:sfrank@saflaw.com

<image001.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.

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To start, Please send me the page with definition of CAM and the page with responsibilities for repair. Thank you, Charles J. Levin Attorney at Law Post Office Box <x-apple-data-detectors://14/0> 2316 Oldsmar, FL 3<x-apple-data-detectors://14/0>4677 Telephone 813-963-5135<tel:813-963-5135> CONFIDENTIALITY NOTICE: Information contained in this e-mail transmission is privileged, confidential and protected by the Electronic Communications Privacy Act, 18 U.S.C. Sections 2510-2521. If you are not the intended recipient, do not read, distribute, or reproduce this transmission. If you have received this e-mail transmission in error, please notify the sender immediately by return e-mail, delete the message, and return any hard copy print-outs. No legal advice is being provided or implied via this e-mail transmission unless you are a client of the sender and an intended recipient. If you properly received this e-mail as a client, co-counsel or retained expert of Charles J. Levin, P.A., you should maintain its contents in confidence in order to preserve the attorney-client or work product privilege that may be available to protect confidentiality. CIRCULAR 230 DISCLOSURE: Any advice contained in this e-mail transmission (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties that may be imposed on any taxpayer. NOT BINDING: Anything in this email or attachments to the contrary notwithstanding, reference to terms and conditions relating to the subject matter in this, previous and subsequent emails and attachments are for ongoing non-binding discussions and negotiations only and do not constitute an agreement or an offer to enter into an agreement. The submission of imbedded or attached documents shall not support a claim of promissory estoppel or reliance. Neither party shall have any obligation to negotiate the terms of a possible agreement and may withdraw from negotiations at any time for any reason or for no reason without liability to the other party. Terms and conditions are strictly "subject to contract" and are not binding on the writer or clients until a single formal written contract has been completed and a paper document has been signed and delivered by all parties. No emails, attachments or facsimile versions of any document or any oral statements will be binding. On Sep 15, 2016, at 11:06 PM, Law Offices of Scott A. Frank P.A <sfrank@saflaw.com<mailto:sfrank@saflaw.com>> wrote: 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@saflaw.com<mailto:sfrank@saflaw.com> <image001.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. _______________________________________________ landten mailing list landten@lists.flabarrpptl.org<mailto:landten@lists.flabarrpptl.org> http://mailman.fsr.com/mailman/listinfo/landten

David Weisman

Fri, Sep 16, 2016 12:12 PM

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@gmlaw.com mailto:David.Weisman@gmlaw.com
www.GMlaw.com http://www.gmlaw.com/

[gm-horizontal-bw_nolaw2 (2)]

From: landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@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@saflaw.com mailto:sfrank@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.

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@gmlaw.com<mailto:David.Weisman@gmlaw.com> www.GMlaw.com<http://www.gmlaw.com/> [gm-horizontal-bw_nolaw2 (2)] From: landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@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@saflaw.com<mailto:sfrank@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.

Scott Frank

Fri, Sep 16, 2016 12:23 PM

Thanks for the answers so far. Please note that this is not a lease drafting question. My standard lease forms already account for this.

I am just debating with my client over an existing lease at a property they are buying. My position is that if its not excluded its included (although gaap seems to indicate that the costs need to be amortized over useful life), but they insist that the capital expenses are excluded if they are not explicitly included. So I wanted to get your take to see how far off I am.

Thanks.

Sent from my iPhone

On Sep 16, 2016, at 8:12 AM, David Weisman David.Weisman@gmlaw.com wrote:

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@gmlaw.com
www.GMlaw.com

<image002.jpg>

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@saflaw.com

<image003.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.

landten mailing list
landten@lists.flabarrpptl.org
http://mailman.fsr.com/mailman/listinfo/landten

Thanks for the answers so far. Please note that this is not a lease drafting question. My standard lease forms already account for this. I am just debating with my client over an existing lease at a property they are buying. My position is that if its not excluded its included (although gaap seems to indicate that the costs need to be amortized over useful life), but they insist that the capital expenses are excluded if they are not explicitly included. So I wanted to get your take to see how far off I am. Thanks. Sent from my iPhone > On Sep 16, 2016, at 8:12 AM, David Weisman <David.Weisman@gmlaw.com> wrote: > > 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@gmlaw.com > www.GMlaw.com > > <image002.jpg> > > From: landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@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@saflaw.com > > <image003.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. > _______________________________________________ > landten mailing list > landten@lists.flabarrpptl.org > http://mailman.fsr.com/mailman/listinfo/landten

Neil B. Shoter

Fri, Sep 16, 2016 3:14 PM

Neil

[cid:image001.jpg@01D2100B.779F77F0]

Neil B. Shoter
Partner

Shutts & Bowen LLP
CityPlace Tower, 525 Okeechobee Blvd, Suite 1100 | West Palm Beach, FL 33401
Direct: (561) 650-8535 | Fax: (561) 822-5525
E-Mailmailto:NShoter@shutts.com | Biography http://www.shutts.com/lawyer/neil-b-shoter | V-Cardhttp://www.shutts.com/index.php?vcard&id=1170 | Websitehttp://www.shutts.com

Please consider the environment before printing this email

From: landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@lists.flabarrpptl.org] On Behalf Of Scott Frank
Sent: Friday, September 16, 2016 8:24 AM
To: RPPTL Landlord Tenant Committee
Subject: Re: [RPPTL LandTen] Question on Capital Expenses

Thanks for the answers so far. Please note that this is not a lease drafting question. My standard lease forms already account for this.

Thanks.

Sent from my iPhone

On Sep 16, 2016, at 8:12 AM, David Weisman <David.Weisman@gmlaw.com mailto:David.Weisman@gmlaw.com> wrote:
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@gmlaw.com mailto:David.Weisman@gmlaw.com
www.GMlaw.com http://www.gmlaw.com/

<image002.jpg>

From: landten-bounces@lists.flabarrpptl.org mailto:landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@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@saflaw.com mailto:sfrank@saflaw.com

<image003.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.

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.

landten mailing list
landten@lists.flabarrpptl.org mailto:landten@lists.flabarrpptl.org
http://mailman.fsr.com/mailman/listinfo/landten

Scott, I agree with you. If the definition of “operating expenses” is broad enough and the lists of “inclusions” or “exclusions” do not expressly limit cap ex pass throughs then I think it’s fair game. Neil [cid:image001.jpg@01D2100B.779F77F0] Neil B. Shoter Partner ________________________________ Shutts & Bowen LLP CityPlace Tower, 525 Okeechobee Blvd, Suite 1100 | West Palm Beach, FL 33401 Direct: (561) 650-8535 | Fax: (561) 822-5525 E-Mail<mailto:NShoter@shutts.com> | Biography <http://www.shutts.com/lawyer/neil-b-shoter> | V-Card<http://www.shutts.com/index.php?vcard&id=1170> | Website<http://www.shutts.com> Please consider the environment before printing this email From: landten-bounces@lists.flabarrpptl.org [mailto:landten-bounces@lists.flabarrpptl.org] On Behalf Of Scott Frank Sent: Friday, September 16, 2016 8:24 AM To: RPPTL Landlord Tenant Committee Subject: Re: [RPPTL LandTen] Question on Capital Expenses Thanks for the answers so far. Please note that this is not a lease drafting question. My standard lease forms already account for this. I am just debating with my client over an existing lease at a property they are buying. My position is that if its not excluded its included (although gaap seems to indicate that the costs need to be amortized over useful life), but they insist that the capital expenses are excluded if they are not explicitly included. So I wanted to get your take to see how far off I am. Thanks. Sent from my iPhone On Sep 16, 2016, at 8:12 AM, David Weisman <David.Weisman@gmlaw.com<mailto:David.Weisman@gmlaw.com>> wrote: 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@gmlaw.com<mailto:David.Weisman@gmlaw.com> www.GMlaw.com<http://www.gmlaw.com/> <image002.jpg> From: landten-bounces@lists.flabarrpptl.org<mailto:landten-bounces@lists.flabarrpptl.org> [mailto:landten-bounces@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@saflaw.com<mailto:sfrank@saflaw.com> <image003.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. 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