Scott, I am not sure if there is an answer to your question under Florida law but see the attachment for a discussion of a Tennessee case.

[cid:image001.jpg@01D2102D.637E9AE0]

Arthur J. Menor
Partner, Board Certified in Real Estate Law

Shutts & Bowen LLP
CityPlace Tower, 525 Okeechobee Blvd, Suite 1100 | West Palm Beach, FL 33401
Direct: (561) 650-8510 | Fax: (561) 822-5510 | Cell: (561) 358-1572
E-Mailmailto:AMenor@shutts.com | Biography http://www.shutts.com/lawyer/arthur-j-menor | V-Cardhttp://www.shutts.com/index.php?vcard&id=895 | 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.

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.commailto: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.commailto:David.Weisman@gmlaw.com
www.GMlaw.comhttp://www.gmlaw.com/

<image002.jpg>

From: landten-bounces@lists.flabarrpptl.orgmailto: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.commailto:sfrank@saflaw.com

<image003.png>

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Thanks Art.

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.

From: landten-bounces@lists.flabarrpptl.org
[mailto:landten-bounces@lists.flabarrpptl.org] On Behalf Of Arthur J. Menor
Sent: Friday, September 16, 2016 3:17 PM
To: RPPTL Landlord Tenant Committee landten@lists.flabarrpptl.org
Subject: Re: [RPPTL LandTen] Question on Capital Expenses

Scott, I am not sure if there is an answer to your question under Florida
law but see the attachment for a discussion of a Tennessee case.

Arthur J. Menor
Partner, Board Certified in Real Estate Law

Shutts & Bowen LLP
CityPlace Tower, 525 Okeechobee Blvd, Suite 1100 | West Palm Beach, FL 33401
Direct: (561) 650-8510 | Fax: (561) 822-5510 | Cell: (561) 358-1572
mailto:AMenor@shutts.com E-Mail |
http://www.shutts.com/lawyer/arthur-j-menor Biography |
http://www.shutts.com/index.php?vcard&id=895 V-Card |
http://www.shutts.com Website

Please consider the environment before printing this email

From: landten-bounces@lists.flabarrpptl.org
mailto: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

mailto:David.Weisman@gmlaw.com David.Weisman@gmlaw.com

http://www.gmlaw.com/ 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

mailto:sfrank@saflaw.com 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 mailto:landten@lists.flabarrpptl.org
http://mailman.fsr.com/mailman/listinfo/landten