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What are capital expenses?

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What are capital expenses?


You must capitalize, rather than deduct, some costs. These costs are a part of your investment in your business and are called capital expenses. Capital expenses are considered assets in your business. There are, in general, three types of costs you capitalize.

  • Business Startup Costs
  • Business Assets
  • Improvements

Note: You can elect to deduct or amortize certain business startup costs. Refer to chapters 7 and 8 of Pub. 535 for more information. 

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Views: 1942 Created on: Jun 15, 2013
Date updated: Dec 01, 2020

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