ctcLink Accounting Manual | 40.60.30.3 Proprietary Funds (Lessor)

Discounted rent provided to the lessee for capital assets or improvements to the leased asset, paid for by the lessee, must be recorded as the gross amount due offset by an expense equal to the discount provided.

Short-term leases and leases not meeting the state’s capitalization threshold should be recorded as revenue since the payments are received using 4030020 - Income from Property.

While the state’s capitalization threshold for all leases is $500,000, it is necessary for the college to assess its leases and determine a level of materiality and adjust the financial statements appropriately. Only entries meeting the state’s threshold should be entered in ctcLink.