Land improvements are enhancements to a plot of land to make the land more usable. If these improvements have a useful life, they should be depreciated. If there is no way to estimate a useful life, then do not depreciate the cost of the improvements. If land is being prepared for its intended purpose, then include these costs in the cost of the land asset. They are not depreciated. Examples of such costs are demolishing an existing building, and clearing and leveling the land.

Land improvements are physical structures that improve the value of land with the specific exclusion of buildings. The value of land improvements can be depreciated and is carefully separated from the value of land itself that generally isn't depreciable.