(redirected from capitalized)
Also found in: Dictionary, Thesaurus, Financial, Idioms, Encyclopedia.


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 ?
The cost of property with a useful life in excess of one year generally must be capitalized under section 263.
Under this test, an expense must be capitalized if such expense produces benefits for the future.
Under the uniform capitalization regulations, however, service costs that either (a) directly benefit or (b) are incurred by reason of the performance of production or resale activities of a taxpayer may be capitalized.
For example, an annual insurance premium paid by a calendar-year corporation in December 2004 for a policy with a term beginning in February 2005 must be capitalized, because the benefit attributable to the payment extends beyond the end of the following tax year.
The TAM concludes that expenditures for removing asbestos from the boiler house must be capitalized for two reasons.
The issue is whether B's capitalized bankruptcy costs were SLLs under Sec.
Another questionable practice that will be curtailed involves what can be capitalized and amortized as overhead.
If Treasury is to formulate an additional bright-line rule, it should be in the form of a safe harbor that recognizes that the cost of distribution activities--such as pick, pack, and ship expenses--are not to be capitalized.
T capitalized interest expense for the construction of a new headquarters during 1997 and 1998.