capital expenditure

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capital expenditure

n. payment by a business for basic assets such as property, fixtures, or machinery, but not for day-to-day operations such as payroll, inventory, maintenance and advertising. Capital expenditures supposedly increase the value of company assets and are usually intended to improve productivity.

References in periodicals archive ?
Worse, further scrutiny of the SIE data reveals that small firms would be unable to expand capital expenditure even if they wanted to.
Wal-Mart's 2004 capital expenditures were estimated at roughly $9 billion, which it hopes to grow to $14 billion this year, Jay Fitzsimmons, the retailer's treasurer and senior vice president of finance, said late last month at the Merrill Lynch Retailing Leaders and Household Products & Cosmetics Conference.
The Service argued that the repairs were capital expenditures, as they were performed to comply with the building code and would increase the property's value.
The IRS disallowed the deduction claiming it represented a capital expenditure.
263(a)(l)-(b) explains that the cost of capital expenditures are added to the basis of the underlying property and "recovered through depreciation, amortization, cost of goods sold, or adjustments to basis.
Oil & Gas Capital Expenditure Outlook 2011 provides in-depth analysis and insights into the oil and gas sectors capital expenditure outlook for 2011.
After the IRS determined deficiencies for 1988-1992, FPL argued that it was entitled to a greater deduction for repair expenses, some of which it had improperly characterized as capital expenditures on returns.
If the expenditure enables property to be put to a new, different use, the cost is a capital expenditure.
Second, where a lump-sum expenditure is connected with both business expenses and capital expenditures, courts have allowed allocation of the expenditure between section 162 and section 263.
Moreover, the courts have specifically recognized that the one-year rule is a useful guidepost for distinguishing between capital expenditures and deductible expenses; see Jack's Cookie Company, 597 F2d 395 (4th Cir.
In Tellier, the Supreme Court said the principal function of "ordinary" in section 162 is to distinguish between currently deductible expenses and nondeductible capital expenditures.

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