Hi,

Our business relocated and signed a 7 year lease. As the building required renovations before we could occupy we acquired a bank loan to cover the cost of a portion of the renos. Overall the renos were about $40,000 more than the loan received. As this is a new process for me I want to ensure that I'm entering the transactions correctly  in Sage. 

*The loan would be set up as a long term liability loan and the principal payment would go against the liability showing the interest as an expense.

*The renovations would be considered a leasehold improvement which would reduce monthly based on the length of the lease. (The renos included such things as building additional rooms, installing data drops, kitchen renos and an accessibility ramp etc. I'm wondering if the architectural drawing work would be considered a leasehold improvement as well). 

Are we able to expense any portion of the renos mainly I'm thinking of the additional $40,000 which wasn't covered by the loan. 

Thanks in advance!

Tamara