Leasehold Improvement
Definition of "Leasehold improvement"
Upgrading made by a lessee to leased property. Examples are paneling and wallpapering. These improvements revert to the lessor at the expiration of the lease term. As improvement costs are incurred under an operating lease, the leasehold improvement account is charged. The leasehold improvement is amortized to expense over the shorter of the life of the improvement or the remaining lease term. If there is a lease renewal option and the prospect of renewal cannot be predicted with certainty, the amortization period should be the original lease term rather than the longer possible term. The amortization expense on a leasehold improvement is not tax deductible. Leasehold improvement is usually considered an intangible asset, because the lessee does not own the leased property.
Popular Real Estate Terms
Any property, tangible or otherwise, except real estate. For example, furniture or automobiles. ...
land that is adjacent to water such as a stream. ...
Revised specifications requiring a modification in work. ...
Residing in or using real estate. An example is a tenant in an office building. ...
Countless real estate disputes and financial disagreements occur in our world. At first, anybody could believe that genuineness, honesty, and integrity might have disappeared. However, the ...
Part of a capital gain constituting tax benefits previously taken and taxed as ordinary income. ...
Tax deduction for interest paid or accrued within the taxable year with respect to mortgage indebtedness. Interest is deductible on mortgages secured by principal and second homes. A ...
One's given name at birth including a first name, a possible middle name, and a surname. The legal name must be used to legally sign documents, deeds, or contracts. ...
Payment made instead of taxes, For example, a tax-exempt institution, such as a state government complex of buildings, may make an offsetting in lieu of tax contributory payment to the ...
Have a question or comment?
We're here to help.