Capital investment
is spending that has long term value to a business. This is often contrasted with that have value to the business today. The following are common types of capital investment.
Land & Buildings
The purchase of land and buildings for your business.
Construction
Any costs that go into constructing a building or structure is a capital investment.
Landscaping
Productive changes to land such as an irrigation system for a farm.
Improvements
Maintenance is expensed. Significant improvements to capital that significantly extend its lifespan are capital investments.
Furniture & Fixtures
Anything that goes into the interior of a building such as a couch or painting that is part of the decor.
Infrastructure
such as networking equipment for a data center.
Machines
Machines such as an industrial robot.
Computing
Computing equipment and devices.
Vehicles
Vehicles used in your business.
Software Development
Software development can often be capitalized for software that is successfully operationalized. A failed project is expensed. As such, a project needs to be finalized before it can be capitalized.
Software
Software you buy from other firms is typically considered a capital investment. Recurring as-you-go license fees are expensed.
Acquisitions
Acquiring another company that adds value to your business.
Branding
A brand purchased from another company is a capital investment. Developing your own brand is typically viewed as an expense.
Intellectual Property
Intellectual property purchased from another company such as a patent. Your own research and development is typically viewed as an expense with some exceptions.