TaxGuided
United States IRC sections

Statute section

IRC section 263

Capital expenditures

Country

United States

Section

263

Updated

2026-05-20

Operative text

Section 263 generally disallows current deductions for amounts paid for new buildings or for permanent improvements or betterments made to increase the value of property. Such amounts must be capitalized and recovered through depreciation or amortization.

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Primary sources

Important disclaimer

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