What is the Schedule of Capital Expenditures?
The Schedule of Capital Expenditures is a report to show, in chronological order, the list of capital expenditures made over a given period of time for your rental property business. Capital expenditures (CapEx) are funds used by a business to acquire, upgrade, and maintain its assets.
What is the Schedule of Capital Expenditures used for?
The Schedule of Capital Expenditures helps you and your CPA track the dates, amounts, service dates, and useful lives for various CapEx items, including buildings, major improvements or repair projects. This helps to ensure you accurately capture all the depreciations and amortizations to maximize tax deductions. The Schedule of CapEx directly ties to your tax returns - this report will help you to understand (and your CPA to prepare) your depreciation tax deductions. See the IRS page on Form 4562 here.
Disclaimer: This content has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for accounting or tax advice.