9.6 D. Double-Dipping

• Jurisdiction: New York

D. Double-Dipping

The landlord’s costs of running separate income-producing parts of the building should be excluded from operating expenses—or the costs permitted into operating expenses—only after the income they generate is deducted from your client’s billable operating expenses. This goes for sundry shops, coffee shops, observation decks, recycling operations, and so on. If the building has a garage, the building owner likely charges tenants and the public for parking spaces, but the cost of operating...