2007-03-08 08:51:49 · 3 answers · asked by @bstract! 2 in Business & Finance ➔ Corporations
The cost you incurred to bring something to an operational state is an initial cost. It is considered capital in nature hence not tax deductible.
Example-buying a fleet of second hand ships and repairing them.
Recurring cost are like maintenance expense. It is considered revenue in nature, hence tax deductible. However, there should not be any improvements when servicing your assets or it will be considered capital in nature.
I assume you are asking with a taxation context.
2007-03-08 09:06:43 · answer #1 · answered by James S 3 · 0⤊ 0⤋
An initial cost is a cost that would be required to begin a service. A recurring cost is a cost that you will keep paying, such as a monthly service plan.
2007-03-08 16:58:02 · answer #2 · answered by Jamie C 2 · 1⤊ 0⤋
Initial cost is what you pay for something at the beginning , while recurring cost is something that will cost you some amount over and over again.
2007-03-08 16:57:51 · answer #3 · answered by Ann D 1 · 1⤊ 0⤋