Title: Building Improvements Vs. Leasehold Improvements | Finance - Zacks
Headings: Building Improvements Vs. Leasehold Improvements
Building Improvements Vs. Leasehold Improvements
Tip
Assessing Leasehold Improvements
Understanding Building Improvements
Leasehold Improvement Tax Treatment
Building Improvement Tax Treatment
Section 179 Deduction
References
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Content: Building Improvements Vs. Leasehold Improvements | Finance - Zacks
Finance
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General Tax Information
Building Improvements Vs. Leasehold Improvements
Building Improvements Vs. Leasehold Improvements
By: Steve Lander | Reviewed by: Ryan Cockerham, CISI Capital Markets and Corporate Finance | Updated February 05, 2019
When you improve your commercial real estate property, the work you do fits into one of two broad areas. A building improvement is something that you do for your building that changes its function, increases its value or extends its useful life. A leasehold improvement on the other hand is something that you do to your building for a specific tenant's benefit. The two types of improvements get treated very differently from the Internal Revenue Service's perspective. Tip
While building improvements may fundamentally alter the functionality or value of a property, a leasehold improvement is something that is undertaken specifically for the benefit of.a tenant.