Leasehold improvements that are set to be removed after the lease ends are considered?

Leasehold improvements that are set to be removed after the lease ends are considered personal property because they are not intended to remain with the property once the lease is terminated. In general, leasehold improvements refer to alterations or enhancements made to a leased space, which are often tailored to the specific needs of the tenant. Since these modifications are designed to be removed by the tenant at the conclusion of the lease, they do not become a permanent part of the real property.

Personal property is typically defined as items that are movable and not permanently affixed to the land or buildings. In this case, since the leasehold improvements will be taken out at the lease's end, they retain their classification as personal property. This differentiation is crucial for assessment and property tax purposes, as different types of properties may be subjected to varied taxation rules and methods of valuation.

In contrast, real property refers to the land and anything permanently attached to it, while chattel specifically refers to tangible personal property that is movable. Leasehold improvements, in terms of their treatment under personal property, align with the expectation that such improvements would not remain as part of the real estate after the lease is over.