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Capitalize vs Expense: Portable bathrooms in lieu of Bathrooms under Construction

Can someone point me to the guidance for capitalized costs incurred in the demolition and reconstruction of Office Bathrooms with respect to renting portable toilets? The demolition and construction costs to tear down the old bathrooms and create new bathrooms is a given. What is less obvious is the rental charge for portable toilet trailers while the construction is ongoing. I would appreciate any help or experience others have had with similar office building projects and how they handled the temporary rental charges.


Victor Shah
Title: Account Manager
Company: FlowRocket, LLC
(Account Manager, FlowRocket, LLC) |

I would expense off the Rental expense for portable bathrooms as the rent you have paid is not part of the renovation material or shipping charges for the material used. The portable bathrooms are substitute and for time being.

Thus, that rent expense do not add any value to the property you are constructing.

Hope this helps.

Kevin Kelso
Title: Controller
Company: The Arc of Delaware
(Controller, The Arc of Delaware) |

Thanks. My thinking was the same. Wanted to get other opinions. I appreciate your help!

Victor Shah
Title: Account Manager
Company: FlowRocket, LLC
(Account Manager, FlowRocket, LLC) |

You're welcome, Mr. Kevin.


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