What is Foreclosure? Foreclosure is the legal right of a mortgage holder or other third-party lien holder to gain ownership of the property and/or the right to sell the property and use the proceeds to pay off the mortgage if the mortgage or lien is in default. It is a concept that has existed for centuries.
Business expenditures can be divided into capital and revenue expenditures. Capital expenditures are expenditures that produce benefits across multiple time periods, such as the costs to acquire and make ready for use long-term assets.
The Internal Revenue Service requires you to capitalize expenditures or depreciate expenses that have business benefits for the future. Property with a useful life greater than a year is depreciated for federal tax purposes over the life expectancy of the property, with a percentage of depreciation allowed each year.