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Documenting Capital Expense(s)

Posted Jan 18 2022, 14:59

Hello All!

First, thank you in advance for taking out the time to read this. My partner and I are currently renovating 2/4 units in our fourplex. My role is to keep track of the P&L, budgeting and documenting. 

I have a question, a rookie one, about Capital Expense. I am somewhat confused and I want to ensure it is correct.

Is Capital Expense a one time charge? or is it an accumulation of charges? For instance, my partner and I spent 5k on new countertops and cabinets. I know this would fall under the Cap Ex category. However, we have also spent over $2650 in different plumbing related items over the past two months as well - faucets, maintenance, etc. How would I record this in my P&L. Currently, I am putting the one-time big purchases like the countertops and cabinets under Cap Ex. For plumbing, I am breaking it down for each unit under maintenance. 

Is this correct? Incorrect? Is it a preference thing? 

Thanks in advance! I truly appreciate you all. 

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