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e-CFR data is current as of September 24, 2020


2 CFR--PART 200

View Printed Federal Register page 85 FR 49570 in PDF format.

Amendment(s) published August 13, 2020, in 85 FR 49570

Effective Dates: Nov. 12, 2020

91. Amend §200.465 by adding paragraphs (d) through (f) to read as follows:

§200.465   Rental costs of real property and equipment.

*   *   *   *   *

(d) Rental costs under leases which are required to be accounted for as a financed purchase under GASB standards or a finance lease under FASB standards under GAAP are allowable only up to the amount (as explained in paragraph (b) of this section) that would be allowed had the non-Federal entity purchased the property on the date the lease agreement was executed. Interest costs related to these leases are allowable to the extent they meet the criteria in §200.449. Unallowable costs include amounts paid for profit, management fees, and taxes that would not have been incurred had the non-Federal entity purchased the property.

(e) Rental or lease payments are allowable under lease contracts where the non-Federal entity is required to recognize an intangible right-to-use lease asset (per GASB) or right of use operating lease asset (per FASB) for purposes of financial reporting in accordance with GAAP.

(f) The rental of any property owned by any individuals or entities affiliated with the non-Federal entity, to include commercial or residential real estate, for purposes such as the home office workspace is unallowable.

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