Article Date:
July 2013

Word Count:



Tenant Improvements Bonanza to Landlord

Do you rent your property?


Are your tenants making improvements to your property?


If so, you might reap both monetary and tax benefits.


Tax Rule


At termination of a lease, tax law excludes the value of tenant (lessee) improvements from the income of the landlord (lessor).1


Example. You lease improved land to a tenant who is required to and does build an office building on the land. At the end of the lease, you own the building. This gives you:



an increase in your holdings equal to the fair value of the building ... Log in to view full article.

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