Vending machines installed in a leased location by the tenant are classified as?

Vending machines installed in a leased location by the tenant are classified as leasehold improvements. This classification is based on their integration into the leased space and the fact that these machines are installed for the purpose of business operations by the tenant. Leasehold improvements refer to modifications made to rental properties to better suit the needs of the tenant. Since the vending machines enhance the functionality of the leased space, they are considered an improvement made by the tenant to the real estate they occupy.

While personal property generally refers to movable items not affixed to real estate, vending machines can be seen as leasehold improvements due to their installation in the leased property. The nature of leasehold improvements is that they remain with the property unless otherwise specified in the lease agreement regarding ownership. Chattel typically refers to personal property that is not affixed to land or buildings, which distinguishes it from leasehold improvements that are specifically tied to the leased premises. Real property includes land and anything permanently attached to it, which does not apply to the nature of the vending machines in this context.