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.
Capital expenditures either create cost basis or add to a preexisting cost basis and cannot be deducted in the year the taxpayer pays or incurs the expenditure. In terms of its accounting treatment, an expense is recorded immediately and impacts directly the income statement of the company, reducing its net profit. In contrast, a capital expenditure is capitalized, recorded as an asset and depreciated over time. 1 Four ways costs can be capital expenditures.
Research and Development - Manufacturing Tax Tips. The expenditures of research and development (R&D) are generally capital expenses. However, you can choose to deduct these expenditures as current business expenses. You must charge to a capital account any R&D expenditures that you do not deduct currently, nor defer and amortize.