capital expenditure

noun

: 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.

Dictionary Entries Near capital expenditure

Cite this Entry

“Capital expenditure.” Merriam-Webster.com Legal Dictionary, Merriam-Webster, https://www.merriam-webster.com/legal/capital%20expenditure. Accessed 15 Nov. 2024.

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