Understanding the Tax Deductibility of Capital Expenditures- A Comprehensive Guide

Are capital expenditures tax deductible?

Capital expenditures, or CapEx, are a crucial aspect of business finance and investment decisions. They refer to the costs incurred by a company to acquire, improve, or maintain long-term assets such as property, plant, and equipment. One of the most common questions that arise in relation to capital expenditures is whether these costs are tax deductible. In this article, we will explore the concept of capital expenditures and their tax deductibility, considering various factors and regulations that may affect the deduction of these expenses.