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
Additional Notes on capital expenditure
Capital expenditures are not deductible for income tax purposes. They are generally added to the property's basis.
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Dictionary: Definition of capital expenditure
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