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Taxes

Expenses

In the world of finance, it's important to understand the difference between deductible costs and capital expenditures. Deductible costs are expenses that can be deducted immediately, while capital expenditures must be spread out over the useful life of the property. This means that while deductible costs can lower your taxable income in the current period, capital expenditures may not have an immediate impact. It's crucial to carefully consider the tax implications of both types of expenses in order to make informed financial decisions.
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