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Questions tagged [capital-expenditure]

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2 votes
0 answers
64 views

Rental expenses in Canada, current vs capital

I am renting my house in Ontario Canada, and claiming the rental income/expenses on my tax return. I know I can claim current repair expenses, but next year 2024, I have to replace the roof and ...
user122866's user avatar
-2 votes
1 answer
97 views

When we invest in a corporation that has high capital expenditure every year but it is buying warehouses, is that less of a concern?

I think the usual idea is that capital expenditure that goes to $0 value is not usually a good thing. For example, if a company needs to buy 5 new fancy coffee maker for $800 every 5 years, and the ...
Stefanie Gauss's user avatar
0 votes
1 answer
47 views

How do I structure accounts to represent capital and depreciation for multiple jurisdictions, keeping equity accurate?

I am required to file taxes for my small (sole proprietorship) business and personal finances in two jurisdictions (Canada and the USA, as it happens). I have capital equipment for my business. Both ...
Jim DeLaHunt's user avatar
0 votes
2 answers
654 views

Loan to partnership or equity contribution?

I'm trying to understand how to account for the following scenario. Three partners purchase a somewhat dilapidated income property for $600K, each partner contributing one third. It requires ...
Ex Umbris's user avatar
  • 518
0 votes
1 answer
96 views

If cash flow is calculated by net income + depreciation without adding capital expenditures, isn't it potentially very inaccurate? [closed]

To invest in companies I need to find out more about cash flow. Sometimes cash flow is defined and calculated by cash flow = net income + depreciation costs - capital expenditures ... (1) ...
nonopolarity's user avatar
  • 1,593
0 votes
1 answer
85 views

Is it true that we typically consider the operating costs, but for a "long lasting item", we make it a capital expenditure and depreciate it? [closed]

When investing in companies, I have to understand what "capital expenditure" is. It seems that we typically consider how much we take in (sales or revenue) and deduct the costs and arrive at net ...
nonopolarity's user avatar
  • 1,593
1 vote
2 answers
134 views

Is the cost of buying computers, warehouses, and trucks and fixing the roofs all "capital expenditure"? [closed]

When investing in companies, I had to understand what "capital expenditure" is. Let's say each year, the company has to buy $200,000 worth of new computers for their employees. Is this capital ...
nonopolarity's user avatar
  • 1,593