CAPITAL IMPROVEMENTS RETOTD Episode 00208
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Expenditures that arrest deterioration of property or add new improvements and appreciably prolong its life. A structural addition or betterment to real property that increases its useful life or productivity or extends the life of a building or its equipment. The improvement must have a life in excess of one year in order for the cost to be recovered (depreciated) for income tax purposes. The use of capital for a betterment that did not exist before.