capitalize

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Related to capitalizes: capitalised

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.

capitalize

(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

capitalize

(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 ?
One outstanding issue for taxpayers is whether a buyer should deduct or capitalize amounts it later pays on a liability in excess of the original amount capitalized.
Before trial, the IRS had allowed a deduction for accumulated interest and loss on disposal of some acquisition assets and ITW agreed to capitalize its original $1 million damage estimate.
Company X recognizes the $500,000 cost of the remedial investigation/feasibility study in the current period and capitalizes the costs of the water-filtration system.
Knowing this, we expect our skill position players to recognize and capitalize on a numbers advantage as soon as it appears.
The IRS requires businesses to capitalize reengineering costs (see TAM 9544001 on reengineering in a conversion to just-in-time manufacturing).