Accounting Dictionary


To capitalize means to expense the cost of an asset over a period of years.

If I bought a computer for $5000 and deducted $1000 of the cost of the computer every year for five years, we would say I capitalized the computer. In contrast, if I bought that $5000 computer and deducted the entire $5000 during the year of purchase, I would say I expensed the computer.

Sign Up to Learn More!

Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!

Scroll to Top