Capitalize


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Capitalize

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.

References in periodicals archive ?
Capitalize is an annual flagship event of Venture Garage, organized in Delhi/NCR to give a platform to start-ups to interact with investors from all across India.
For more information about SunGard and Capitalize Analytics is helping K-12 organizations make better data driven decisions visit:
Atkinson, "A Bright Line Rule Dims: Manufacturers Must Capitalize Environmental Cleanup Costs," 45 TAX MGMT.
The simple answer is because there is no earthly reason to capitalize any of these words.
We also seek to capitalize on positive numbers in the "tackle box" (Diag.
"It's very gratifying to see property owners banding together to fund the Capitalize Albany Clean Team," said Mayor Gerald D.
If it's part of any organization, capitalize it: The Accounting Records are kept on the Seventh Floor.
company not being able to capitalize interest on the entire construction cost.
The election to capitalize is made by filing a statement, on a plain piece of paper, with the original tax return for the year in which the election is to be effective.
2011-14 (which discusses the requirements to receive automatic consent to change the timing of incurring employee bonuses) states that: This change does not apply to a taxpayer that is required under [section] 263A and the regulations there under to capitalize these costs with respect to which the taxpayer wants to change its method of accounting under this section 19.01(2) of the APPENDIX if the taxpayer is not capitalizing these costs, unless the taxpayer concurrently changes its method to capitalize these costs in conjunction with a change to a UNICAP method under section 11.01 or 11.02 of this APPENDIX (as applicable).
the Seventh Circuit articulated the general rule: Companies must capitalize the payment of an assumed liability connected with the acquisition of an asset.
The regulations require taxpayers to capitalize costs incurred to create or enhance a "future benefit identified in published guidance in the Federal Register or the Internal Revenue Bulletin ...