(20) In General Counsel Memorandum 34959 (July 25, 1972), Chief Counsel's Office recommended that the IRS issue a revenue ruling to permit a taxpayer to deduct small capital expenditures
that do not exceed $100 in the year incurred.
In TAM 9315004 (dated December 17, 1992), the IRS concluded that expenditures to remove and replace contaminated soil added value to land.(2) In TAM 9411002 (dated November 19, 1993), the IRS found that expenditures to remove and replace asbestos, in connection with the conversion of a boiler room to a garage and office space, were capital expenditures
because the costs adapted the property to a new and different use but that costs of encapsulating exposed asbestos in an adjacent warehouse were deductible.
Photo: CHART 2 Capital Expenditures
by Majority-Owned Foreign Affiliates of U.S.
Thus, any expenditure that, in the eyes of a revenue agent, is "more in the nature of a capital expenditure
" must be capitalized even if it can be objectively demonstrated that the expenditure does not add value, does not prolong life, and does not adapt property for a new or different use.
SEC regulation S-K, item 1, requires companies to disclose the material effects compliance with federal, state and local environmental laws may have on capital expenditures
, earnings, and competitive position." Item 1 also requires companies to reveal the material estimated capital expenditures
for environmental control facilities for the current fiscal year, the succeeding fiscal year and "such further periods as the registrant may deem material.
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
In a very few cases, an analysis of all the factors involved in distinguishing deductible repairs from capital expenditures
may lead to an inconclusive result.
'The proceeds of the corporate notes facility will be used to fund the company's 2019 capital expenditures
for commercial property projects, and to fund other general corporate purposes,' Vista Land said in its disclosure.
Caption: Medical Devices, Instruments and Supplies : Part of the explanation for the fourth-quarter growth in free cash flow is a simultaneous reduction in capital expenditures
. Of the $1 billion increase in free cash flow among the firms Gardner Intelligence studied, the reduction in capital expenditures
accounted for approximately 20% of the change.
Hilcorp's original 2018 capital expenditures
plan delivered to the Trust in February 2018 reported estimated capital expenditures
of $547,800 for the Trust's subject interests, which included two facility projects and seven well recompletions.
The total expenses for Shah Deniz in the annual comparison decreased by 44 percent, operating expenses increased by 0.40 percent, while capital expenditures
decreased by 51 percent.
Gulfports drilling and completion capital expenditures
for 2017 totaled $1.1 billion, midstream capital expenditures
totaled $46.1 million and leasehold capital expenditures
totaled $132.5 million.