What is a Leasehold Improvement?
Simply stated, leasehold improvements are alterations, improvements, or additions made to leased property by or for a lessee/tenant. There is an entire array of possibilities that may be regarded as leasehold improvements. The most common leasehold improvements are the alterations made to leased office or retail space where the tenant completes all or part of the interior of a building. However, these alteration/additions and improvements tend to range from relatively short-lived trade fixtures and décor to entire buildings. Should Leasehold Improvements be assessed as Real Property or Personal Property? All leasehold improvements should be assessed as personal property unless the taxpayer or assessor can confirm that property has been assessed and valued with the real property. Merely assuming that a leasehold improvement has been assessed as real property can result in permanent omissions. To determine whether personal or real, the Uniform Standards of Professional Appraisal Practice
