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  • Are landscaping costs capitalized under U.S. GAAP?

    Landscaping costs are considered a land improvement and are not capitalized to the cost of land. There is a key difference between land and land improvements. Land costs can be capitalized but land is not depreciated. Land improvements are capitalizable, but they are depreciated over their useful life.

  • What is the difference between land and land improvements under U.S. GAAP?

    Both land and land improvements costs can be capitalized, but only land improvement costs are depreciated. The visual below lists out costs that are classified as land costs and costs that are classified as land improvement costs:

  • Are sidewalks and paving costs capitalized under U.S. GAAP?

    Yes, but they are considered a land improvement and not part of the capitalized land cost. The reason that it is important to make this distinction is that land is not depreciated, but land improvements are depreciated over their useful life.