### Question
How does the law define qualified leasehold improvement property?


### Answer
Under *26 U.S.C. § 168*, **qualified leasehold improvement property** is defined as:

> any improvement to an interior portion of a building which is nonresidential real property if—


(i) such improvement is made under or pursuant to a lease (as defined in subsection (h)(7))—


(I) by the lessee (or any sublessee) of such portion, or


(II) by the lessor of such portion,


  

(ii) such portion is to be occupied exclusively by the lessee (or any sublessee) of such portion, and


(iii) such improvement is placed in service more than 3 years after the date the building was first placed in service

#### Citation:
  - *26 U.S.C. § 168*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

