Dictionary of Real Estate Terms: qualified leasehold improvement property
qualified leasehold improvement property
an improvement to an interior portion of nonresidential real property by a lessor or lessee under or pursuant to a lease. Such an improvement may qualify for bonus depreciation if made to a portion of the building occupied exclusively by the lessee and if the building is more than three years old. Expenditures for enlargement of a building, elevators and escalators, structural components that benefit a common area, and internal structural framework of the building do not qualify for bonus depreciation. The lessor and lessee may not be related parties.
