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.