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How to Calculate Deferred Rent Expense

By Motley Fool Staff – Updated Apr 29, 2025 at 10:32PM

Key Points

  • Deferred rent expense adjusts for uneven payments across a lease term.
  • Monthly financials use a straight-line rent expense, averaging total lease payments.
  • Use of deferred rent accounts balances financial statements, complying with GAAP.
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