The big-box consumer-electronics retailer, which was at the bottom of the totem pole last year with capital expenditures
of roughly 1.
6) The Tax Court also acknowledged that expenses incident to other types of changes in corporate structure or capitalization generally constitute capital expenditures
The report provides in-depth analysis and insights into the oil and gas sectors capital expenditure
outlook for 2011.
If an otherwise deductible repair is part of an overall pattern of rehabilitation, the entire cost may be considered a capital expenditure
23 (1999), the Tax Court, for the first time, specifically addressed whether a one-year rule exists for determining whether a payment is a capital expenditure
or a deductible expense.
In a case of first impression, the Tax Court held costs incurred by a target company in a friendly merger were nondeductible capital expenditures
[National Starch and Chemical Corporation v.
The Service held (and the Eleventh Circuit agreed) that the expenses were capital expenditures
incurred incident to the acquisition of a capital asset.
For example, it may be necessary to provide disclosure in the notes to the financial statements if a company is required to commit funds for significant capital expenditures
in response to an environmental law change.
Free cash flow (cash from operations less capital expenditures
less dividends) was negative $131.
The distinction between deductible repairs and capital costs is based on the purpose of the expenditures: the purpose of a repair is to restore property back to an efficient operating condition, while the purpose of capital expenditures
is to extend the property's life, increase its value or make it adaptable to a new use.
The Tax Court repudiated Five Star with this reasoning: Fundamentally, a buyback is an acquisition of a capital asset (the corporation's stock), and costs incurred in the acquisition of a capital asset are nondeductible capital expenditures
Free cash flow after maintenance capital expenditures
for the quarter was US$570 million, up 53% from US$373 million in the same quarter of 2005.