(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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
But if the taxpayer knowingly purchased contaminated property and then embarked upon remediation, perhaps all the remediation expenditures, including encapsulation, should have been capitalized. Conversely, if the property was purchased before contamination was discovered, a strong argument can be made that none of the remediation expenditures, as such, should be capitalized because removing the contamination simply restores the property to uncontaminated value and does not add value.
In each case, 100% of the banks were either Well Capitalized or Adequately Capitalized.
Significantly, the "additional rule" only operates in one direction--to require the use of a smaller unit of property than would otherwise result from application of the preceding standards, thereby increasing the likelihood that costs must be capitalized as improvements rather than deducted as repairs.
Only costs incurred after acquisition or construction is likely to occur can be capitalized. In expounding on the principle of which expenditures can be capitalized as part of the cost of PPE, AcSEC concluded that it depends upon both when the expenditure occurs and what the expenditure is for.
"It seems to me, that on the balance, agencies seem to be doing very well," said Steve Holcomb, president of Mangan Holcomb Rainwater Culpepper of Little Rock, which doesn't release capitalized billings information.
Direct costs of obtaining an option related to the acquisition may be capitalized.
A state member bank that controls or holds an interest in a financial subsidiary must comply with the following rules in determining its compliance with applicable regulatory capital standards (including the well capitalized standard of section 208.71(a)(1)):
According to the FTC, almost everything from the net capitalized cost to the acquisition fee, is negotiable.
I can also accept capital letters on Holy Bible because these words constitute the title of a book and such words are generally capitalized.
Mary Neth and Sally McMurry tell the story of the Great Transformation of the rural north from self-sufficient, family centered farming to a heavily capitalized agriculture tied to distant markets and split from community and home.
You've never seen the name of a meeting capitalized before.
If the asset is acquired for sale, the capitalized interest is expensed through the cost of goods sold account when the asset is sold.