Capital Improvement


Definition of "Capital improvement"

Costs incurred in connection with real property that increase its cost basis or worth, such as a new roof, an additional room, or paneling a room.

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Section 167

Section of the Internal Revenue Code relating to depreciation. Capital improvements made to real property are depreciable. ...

Tax Basis

The cost of property, such as a home owned for tax purposes. For example, a home was purchased for $150,000. capital improvements to it cost $15,000. ...

Holding Cost Of A House

The initial cost of a home plus any expense for final settlement that are not tax deductible plus capital improvements. ...

Adjusted Basis

Cost measuring method for tax purposes where the cost is reduced because of depreciation and increased because of the cost of capital improvements. ...

Change

Concept used in valuing real property that conditions may be altered requiring a revised estimate of market value. These conditions include a shift in ...

Maintenance

Periodic expenditures undertaken to preserve or retain a property's operational status for its originally intended use. These expenditures do not impr ...

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