Legal Definition of capital expenditure
: an amount paid out that creates a long-term benefit (as one lasting beyond the taxable year) especially : costs that are incurred in the acquisition or improvement of property (as capital assets) or that are otherwise chargeable to a capital account
Note: Capital expenditures are not deductible for income tax purposes. They are generally added to the property's basis.
Love words? Need even more definitions?Merriam-Webster unabridged
Words at Play
Ask the Editors