Discussion:Who Gets the Leasehold Improvements

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Revision as of 23:48, 22 June 2006
Dennis (Talk | contribs)
(Shouldn't, but c)
← Previous diff		 Revision as of 00:02, 23 June 2006
Warren (Talk | contribs)
(I would think th)
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{{ForumReplyPost|UserID=Dennis|Date=22 June 2006|Text=Shouldn't, but contracts are funny things.}} {{ForumReplyPost|UserID=Dennis|Date=22 June 2006|Text=Shouldn't, but contracts are funny things.}}
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 +{{ForumReplyPost|UserID=Warren|Date=23 June 2006|Text=I would think that the purchase price of the restaurant would be allocated to the FMV of the leasehold improvements and any other physical assets. If there is additional purchase money above the FMV of the assets that additional amount would be goodwill.}}

Revision as of 00:02, 23 June 2006

Discussion Forum Index --> Tax Questions --> Who Gets the Leasehold Improvements

Fabulous (talk|edits) said:

22 June 2006
Does the purchaser assume the sellers existing leasehold improvements when buying a business? Let me go a bit further. The buyer is

purchasing a restaurant, but is leasing the building from the seller (so the building is not included in the sale). The seller has a separate LLC that owns the building and leases the building to the restaurant (owned under a separate LLC). The Restaurant made substantial improvements to the building and claims leasehold improvements on it's return. Does the buyer simply assume the leasehold improvements from the seller as part of it's purchase price allocation, or does the buyer get no leasehold improvements because there was no cash outlay for improvements because he is leasing an already improved site?

Dennis (talk|edits) said:

22 June 2006
Shouldn't, but contracts are funny things.

Warren (talk|edits) said:

23 June 2006
I would think that the purchase price of the restaurant would be allocated to the FMV of the leasehold improvements and any other physical assets. If there is additional purchase money above the FMV of the assets that additional amount would be goodwill.
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