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leasehold improvements

   Also found in: Acronyms 0.03 sec.
leasehold improvements

Improvements made by tenants to leased premises.The cost must be depreciated over a 39-year term,even if the lease will last only 5 years.At the end of the lease term, the tenants then write off on their taxes all the remaining undepreciated balance. For a short period of time between November 2004 and January 1, 2006, leasehold improvements could be depreciated over 15 years rather than 39.(Beware of tax advice indicating this is still the law.)



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