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PrintExamples of Capital Expenditures
To assist you with your deduct-or-capitalize analysis, we've put together the following list of items that the IRS or the courts have determined to be capital expenditures under certain circumstances.
- abstracts of title costs
- appraisal costs paid in obtaining possession of premises
- author's publishing costs
- boiler patching and welding costs
- burglar alarm installation charges
- business facility improvement costs (for example: waterproofing; replacing a roof; planning, designing, and constructing an addition; remodeling costs)
- cable replacement costs upon sudden failure
- copyright development costs
- credit card, membership fees
- display cases, remodeling costs
- drainage costs
- electric wiring, costs (new wiring, replacement, and rearrangement)
- electrical system replacement costs
- Federal Communications Commission (FCC) license preparation fees
- fire escapes, costs of cutting exits to, costs of new
- flood protection costs (such as costs of raising floors, or rearranging bins)
- insulation costs
- irrigation system costs
- merger negotiation costs
- mutual fund setup costs incurred by investment advisors
- office, cost of changing location and equipment
- package design costs
- performance bond premiums
- Security Exchange and Commission (SEC) statement preparation cost
- settlement costs for threatened lawsuit
- well (water) costs
- zoning change costs that increase the value of property beyond the tax year
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