Section 263(a)

A section of the Internal Revenue Code dealing with capital expenditures related to real estate and the corresponding improvements. In general any purchase for real estate that has some future benefit to the business is capitalized and not expendable in the current tax year.

Capital Expenditures – IRS Definition

The Internal Revenue Service uses a complex definition to identify capital expenditures (assets).  A capital expenditure is not deductible as an expense in the tax year purchased; the taxpayer or entity must use depreciation, amortization or depletion to obtain deductible value on the entity’s return.  This article is an introduction to the Internal Revenue Service’s …

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