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To regard the cost of an improvement or other purchase as a capital asset for purposes of determining Income Tax liability. To calculate the net worth upon which an investment is based. To issue company stocks or bonds to finance an investment.

The owner of a business may capitalize the expense of renovating a factory to maximize his or her after-tax profits, since such expenses may be used to decrease the pretax profits, thereby reducing the amount of profits subject to taxation.

An individual may compute the net worth of shares of stock, in order to treat them as capital assets for income tax purposes. Such treatment often results in more favorable rates of taxation on the profits made when assets are sold because they are considered capital gains.


(Provide capital), verb advance, afford aid, afford support, aid, aid with a subsidy, back, back up, bring aid, contribute, extend credit, favor, finance, fund, furnish aid, furnish foundations, furnish support, give aid, give support, help, invest, lend, lend one's aid, lend support, loan, pecuniam mutuam dare, pension, promote, provide capital for, provide for, provide funds for, provide money for, set up, set up in business, sponsor, subsidize, supply aid, supply support, supply with a subsidy, support, venture capital
Associated concepts: capitalization of income, capitalization of net income, capitalization of stabalized income, capitallze earning


(Seize the chance), verb avail oneself of, benefit, convert to use, create an opening, employ, exploit, find one's advantage in, make an opening, make the most of, make use of, manipulate, profit, put in operation, put to advantage, put to service, reap the benefit of, render useeul, take advantage of, take the opportunity, turn to good account, turn to one's advantage, utilize, utilize for profit
See also: finance
References in periodicals archive ?
In addition, the taxpayer must capitalize all of the indirect costs of producing the repair allowance property in the MACRS class, in accordance with the taxpayer's accounting method under the uniform capitalization rules of section 263A.
This approach would eliminate the burden of having to capitalize immaterial items and account for deferred taxes, and it more truly portrays the commercial intent that these transactions are an operating expense.
I tip my cap to her (for) her effectiveness (in) working (the outside) of the zone, and, unfortunately, we didn't capitalize on it,'' Enquist said.
This method capitalizes the cost of a policy at acquisition.
So I remained what I wrote in the article--"probably the only person in America who doesn't capitalize internet.
Knowing this, we expect our skill position players to recognize and capitalize on a numbers advantage as soon as it appears.
Many were pushed from the land when they could not capitalize farm production or find labor and exchange opportunities in their community to sustain the old system.
The regulations additionally provide that taxpayers may elect to capitalize necessary expenditures associated with development of real property up to the time the development is completed.
471 costs included in ending inventory to determine the additional amount to capitalize for tax purposes.
However, lenders may still deduct various loan expenses (such as employee compensation, overhead, and de minimis costs not exceeding $5,000 per transaction) for income tax purposes, even if lenders capitalize such expenses for accounting purposes.
the Seventh Circuit articulated the general rule: Companies must capitalize the payment of an assumed liability connected with the acquisition of an asset.
In Lincoln Savings, the Supreme Court required a financial institution to capitalize payments made to a government-administered insurance fund where the financial institution had a continuing property interest in the fund.