Law Dictionary

capital expenditure


Legal Definition of capital expenditure

  1. :  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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to criticize severely

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