capital improvement的意思|示意

'

Capital improvement, in business and accounting, refers to a permanent improvement to a property or asset that will either increase its value or useful life. Capital improvements may include but are not limited to additions, alterations, or other work done on a building or property that increase its value, such as painting, wallpapering, tiling, landscaping, adding a deck or patio, or replacing a refrigerator or other appliance.

Capital improvements, in accounting, are capitalized rather than expensed. This means that the cost of the improvements is added to the value of the asset rather than be charged against the current year's earnings. This means that the cost is spread out over several years, reducing the current year's tax liability.

Capital improvements are generally classified as repair and maintenance projects, which vary in cost. For example, a new roof for a building is a capital improvement. However, smaller projects such as repairing a leaky roof or painting a wall are classified as repairs and are not capitalized.

In some cases, capital improvements can be depreciated over time. This means that the cost of the improvement is spread out over several years and is allowed to be deducted from the taxpayer's income as a business expense. The amount of depreciation allowed is determined by the Internal Revenue Service (IRS).

Capital improvements can affect the value of a property. Any improvements that increase the value or useful life of a property, such as installing a new roof or replacing a furnace, should be added to the cost basis of the property, which is the original purchase price plus improvements.

In summary, capital improvement is a permanent improvement to a property or asset that will either increase its value or useful life. Capital improvements are capitalized in accounting and can be depreciated over time. They can also affect the value of the property, as any improvements that increase the value should be added to the cost basis of the property.