CLASSIFYING PROPERTY - LEASEHOLD IMPROVEMENTS - 8610.4

(Revised: 08/2026)

 

Legal Authority

SAM sections 8602 and 8618.1

Definitions

Leasehold improvements are additions, improvements, or betterments made by the department to leased property not owned by the state.

Policy

Departments will capitalize leasehold improvements when costs meet the capitalization threshold in SAM Section 8602 and add value or increase space as outlined in SAM Section 8618.1.

Responsibilities

Departments will record record leasehold improvements in Account No. 1604000, Leasehold Improvements - Depreciable.

Departments will not record leasehold improvements paid by the lessor.

Resources

  None.

 

 

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