Capital Expenditure

By: Martin M. Shenkman, CPA, MBA, JD

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.

Our Consumer Webcasts and Blogs

Subscribe to our email list to receive information on consumer webcasts and blogs, for practical legal information in simple English, delivered to your inbox. For more professional driven information, please visit Shenkman Law to subscribe.

Ad Space