Tag: capital-expense

• Operating Expense vs Capital Expense (28 Apr 2021)
  

  An operating expense (OPEX) is an expense required for the day-to-day functioning of a business. In contrast, a capital expense (CAPEX) is an expense a business incurs to create a benefit in the future. Operating expenses and capital expenses are treated quite differently for accounting and tax purposes. This note is based on my reading of The Difference Between an Operating Expense vs. a Capital Expense