Overview
Leasehold improvements are expenditures for improvements to existing or new leased spaces. These improvements should be capitalized if the cost exceeds $50,000 and the cost is borne by the institution.
If the lease contains an option to renew for additional years but renewal is uncertain or the likelihood of renewal is uncertain, the improvements should be depreciated over the original term of the lease or the useful life of the improvement.
DEPRECIATION OF LEASEHOLD IMPROVEMENTS: Generally depreciated over the lesser of the original term of the lease or the useful life of the improvements