What are leasehold improvements, and should I report them?
Leasehold improvements are improvements or additions to leased property that benefit the lessee (tenant or renter). Improvements made to a building that you own and occupy, are not leasehold improvements. You should report leasehold improvements as personal property if (a) you, as the tenant, made or own the improvements or additions; or (b) you, as the landlord, made or own the improvements or additions for a specific tenant. Include sales tax in the cost you report and provide information in the “Building/Office Space Lease Data” and “Conditions of Lease” sections of the form to help us determine the assessment. If you own the building you occupy, do not report leasehold improvements.
