Improvements to sub leased property-capital?

[jesmn80]

If a tenant sublets the lease for their office to a sub tenant for the remaining 4 years of lease (for the same rent as they owe to the original land lord) and makes improvements to the office as per the sublease, is the cost of improvements made capitalizable over the 4 years?

 

[jesmn80]

Can anyone please help with this?

Thanks!

 

[bklynboy]

lease improvements are capitalized over the shorter of useful life or lease term.

 

[Counterofbeans]

Unless the useful life of the improvements is less than 4 years (see bklynboy's comment above), the answer is yes.