An expenditure intended to benefit the future activities of a business, usually by adding to the assets of a business, or by improving an existing asset
An expenditure made for assets with useful lives of more than one year Usually capital expenditures may not be deducted in the year they are paid, even if they are paid in connection with a trade or business In other words, they are capitalized and generally may be depreciated or amortized
An expenditure for the acquisition, replacement, modernization, or expansion of facilities or equipment which, under generally accepted accounting principles, is not properly chargeable as an expense of operation and maintenance
The cost of an asset, including the cost to put it in place Capital expenditure for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it was acquired Ancillary charges, such as taxes, duty, protective in-transit insurance, freight, and installation may be included in the capital expenditure cost in accordance with the recipient organization's regular accounting practices
The cost of an improvement made either to lengthen the useful life of a property or to add value to it It's a fancy term for the money you pony up for improvements See also capital improvement
an improvement (as distinguished from a repair) that will have a life of more than one year Capital expenditures are generally depreciated over their useful life, as distinguished from repairs, which are subtracted from income of the current year
An expenditure for the acquisition, replacement, modernization, or expansion of facilities or equipment which under generally accepted accounting principles is not properly chargeable as an expense of operation and maintenance
Money spent to improve a property and enhance its value over an extended period of time (as opposed to a repair) May be added to the adjusted cost base of the property improved or depreciated over the useful life of the improvement
The construction or purchase of a fixed asset (land, building, machinery, etc ) costing $2,000 or more and having an expected life of two years or more Capital expenditures are depreciated over Guideline Lives specified by the IRS
A payment to buy, build, improve or fix an asset (property that you own) which will last for more than one year Capital expenditures generally can't be deducted in the year paid Instead, they must usually be added to your investment (adjusted basis) in the asset, then be written off (depreciated) over a longer period Examples of capital expenditures include the costs to build a new building, add a new roof, build a new den, pay a broker for finding a tenant, and so forth