Legal Definition and Related Resources of Capital Expenditure

An expense incurred in acquiring or disposing of property . Wood ward v Commissioner o f Internal revenue (C.A. Iowa) 410 F.2d 313. Also, the term refers to improvements as distinguished from repairs. See Brooks v Commissioner of Internal Revenue (C. .4.5)424 F.2d 116; an expenditure in the nature of an investment for the future. Marine union For Junior college district v Gwinn, 106 Cal.App. 12, 288 P. 799.

Browse or run a search for Capital Expenditure in the American Encyclopedia of Law, the Asian Encyclopedia of Law, the European Encyclopedia of Law, the UK Encyclopedia of Law or the Latin American and Spanish Encyclopedia of Law.

Capital Expenditure in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Capital Expenditure in Historical Law in the Encyclopedia of Law.

Search for legal acronyms and/or abbreviations containing Capital Expenditure in the Legal Abbreviations and Acronyms Dictionary.

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What does Capital Expenditure mean in American Law?

The definition of Capital Expenditure in the law of the United States, as defined by the lexicographer Arthur Leff in his legal dictionary is:

In corporation law, an expenditure made from those accounts reflecting the portion of a corporation”s capital not lawfully available for distribution. Also, expenditure for long-term improvements to property which, for tax purposes, ought not be treated as an expense, but rather added to the basis of the improved property, and then depreciated over time. See I.R.C. § 263.

Capital Expenditure Definition (in the Accounting Vocabulary)

The New York State Society of Certified Public Accountants offers the following definition of Capital Expenditure in a way that is easy for anybody to understand: Outlay of money to acquire or improve capital assets such as buildings and machinery.

United States Tax Concept of Capital Expenditure

Costs that are not currently deductible and that are added to the basis of property. A capital expense generally increases the value of property or lengthens its useful life. Repairs, on the other hand, only maintain the property. When added to depreciable property, the cost is deductible over the life of the asset.