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Simple English definitions for legal terms
capital improvement
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A quick definition of capital improvement:
Capital Improvement: When someone spends money to buy or make something better that they will use for a long time, it is called a capital improvement. This is also known as a capital expenditure or capital outlay. For example, if a school spends money to build a new playground or renovate a classroom, it is a capital improvement because it will benefit the school for many years.
A more thorough explanation:
Capital improvement refers to an investment made to acquire or enhance a fixed asset. It is also known as capital expenditure or capital outlay.
For example, a company may spend money to purchase new machinery or upgrade its existing equipment. A city may invest in building a new bridge or renovating a public park. In both cases, the funds spent on these projects are considered capital improvements.
These examples illustrate how capital improvements are long-term investments that are expected to provide benefits for many years. They are not considered regular expenses, but rather strategic investments that can help improve efficiency, productivity, and quality of life.