Fix line lease easily

Aug 6th, 2022
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How to fix line lease

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okay so I say we looks like most people have selected a breakout room so weve got a small group here so you guys you three should be able to unmute to ask questions as we go through things because the the point of these breakout sessions is to have a discussion not for you to just listen to us necessarily so make sure you ask us any questions that come up um Im going to run through a couple of things The Voice youre hearing is Im Scott Royce Im the AG agent up in OConnell and Marinette counties and you can probably see Josh I dont use my video because my office does not have good enough internet connection its the easy way to say it if I use video I use the end up losing Zoom so um but Josh is going to be talking about a couple of things specific within here and to show you a few things too but Im going to go through a couple of General things that um and being blunt you know I do a lot of land rent workshops up in this neck of the woods and theyre usually two hour workshops

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The straight-line concept is based on the idea that the usage of the rental arrangement is on a consistent basis over time; that is, the rented asset is used at about the same rate from month to month. To calculate straight-line rent, aggregate the total cost of all rent payments, and divide by the total contract term.
Straight-line rent is the concept that the total liability under a rental arrangement should be charged to expense on an even periodic basis over the term of the contract.
Under current US GAAP , the FASB states that when rents are not constant, the lease expense should be recognized on a straight-line basis throughout the life of the lease. This method of rent expense recognition is applicable under both ASC 840 and ASC 842 for leases classified as operating leases.
However, to calculate straight-line rent expense, you simply add up total cash rent paid and divide by the lease term in months. For example, if rent is $50,000 total for a 5 year lease and the first year is free, then you would pay the $50,000 over 4 years at $12,500 per month.
Rent expense is calculated on a straight-line basis. Lease agreements may include rent abatements, and/or escalations.
The Straight-Line Rent report adds the rent amounts for the entire lease term, and then divides the sum by the number of months in the lease term. The straight line rent is calculated at the beginning of the lease for the entire term of the lease agreement.
Straight-line rents Generally, for operating leases, GAAP requires fixed rent payments to be expensed straight-line over the term of the lease, whereas for federal income tax purposes, generally the rules require taxpayers to deduct rents following the payment schedule for most conventional leases.
Under both ASC 840 and ASC 842, the formula to calculate the straight-line expense is as follows: Total net lease payments divided by the total number of periods in the lease.
Under ASC 840, the lease start date for accounting purposes is the date possession is passed from the landlord to the tenant. On that date, the lessee, or tenant, should begin recording straight-line rent expense even if that date is earlier than the commencement date specified in the lease.
Line rental is not a charge for your home phone; its really the cost of maintaining the wire (or line) that brings your broadband, landline and even some TV services into your home.

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