Definition
Physical additions or changes to land or buildings that increase value or extend useful life.
Example
Improvements are capitalized and depreciated; ordinary repairs are deducted in the year incurred.
Related terms
- Adjusted Basis
- Assessed Value
- Cost Segregation
- Depreciation
- Depreciation Recapture
- Exchange Accommodation Titleholder
Frequently asked questions
What does Improvements mean in real estate?
Physical additions or changes to land or buildings that increase value or extend useful life.
How is Improvements used in practice?
Improvements are capitalized and depreciated; ordinary repairs are deducted in the year incurred.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.