Tax Guide

 Search  2024 Tax Guide  Tax Tools
 Tax Calendar  Tax Glossary

< Previous Page Next Page >

Examples of Capital Expenditures

To assist you with your deduct-or-capitalize analysis, we've put together the following list of items that the IRS or the courts have determined to be capital expenditures under certain circumstances.

Tip

Tip

The IRS has issued new regulations in this area that generally apply to tax years beginning on or after January 1, 2014. But, for 2012 and 2013, it also provided taxpayers with the ability to elect certain regulations. The best choice for each taxpayer depends on the taxpayer's unique situation. Consult your advisor to determine which approach would be best for you and your business.

warning

Warning

Remember that the same item that was a deductible expense to one taxpayer might be a capital expenditure to another.

That's mainly because the deduct-or-capitalize question does not just involve what was purchased, but also whether its benefits will be expected to last for more than one year. If two taxpayers use an identical item in different ways in their businesses, the item may represent a capital expenditure to one, but a currently deductible expense to the other.


< Previous Page Next Page >

© 2024 Wolters Kluwer. All Rights Reserved.