Looking at the lessee side here. Here’s some easy to use numbers and fact pattern:

- 5 year lease for $1,000/mo

- $1,000 tenant improvement allowance to lessee payable throughout the duration of the improvements and can be given in any amounts (500, 300, 200) and does not need to be paid back

- $1,000 tenant improvement allowance to lessee payable throughout the duration of the improvements but needs to be paid back to lessor

For the improvements the lessee is planning (and yes this exceeds the tenant improvement allowance amount)

$4,000 towards lessor owned assets

$2,000 towards lessee owned assets

For this whole fact pattern, how the heck do account for the improvement allowances and then the improvements themselves as well?