Definition
Spending on major replacements or improvements that extend a property's useful life, capitalized rather than expensed.
Example
Replacing the roof was a capital expenditure; patching a leak was a repair.
Related terms
Frequently asked questions
What does Capital Expenditure mean in real estate?
Spending on major replacements or improvements that extend a property's useful life, capitalized rather than expensed.
How is Capital Expenditure used in practice?
Replacing the roof was a capital expenditure; patching a leak was a repair.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.