Setting up a lease with delayed amortization

A customer recently contacted us with an unusual situation. They signed a capital lease but won't take occupancy until significantly later because of a need for build-out. They don't want to recognize depreciation on the ROU asset until they take occupancy.

While EZLease doesn't have a specific field for a delayed start date for depreciation, we can still accomplish this. Set up the lease as normal, but set the depreciation method to "No depreciation." Then, when ready to take occupancy, revise the lease, changing the depreciation method to "Straight Line." EZLease begins depreciation as of the revision date, without restating the depreciation for prior periods.

Lease with no depreciation in EZLease