Final answer:
Capital expenditures for tax purposes include costs that provide benefits beyond the current tax year, such as defending property title and paying commissions on securities purchases, but do not include routine maintenance like oil changes for trucks.
Step-by-step explanation:
The question which of the following are capital expenditures for tax purposes pertains to the classification of certain expenses in the realm of business accounting and tax. The correct answer to the question is d. a and b, meaning that both the cost of defending or perfecting title to property and commissions paid in purchasing securities are considered capital expenditures for tax purposes. These costs are capital because they are expected to provide benefits extending beyond the current tax year. On the other hand, changing the oil in trucks used for business purposes is considered a routine maintenance expense and is therefore not a capital expenditure.
A capital expenditure, for tax purposes, refers to a cost incurred to acquire or improve a long-term asset for a business. It is generally not fully deductible in the year it is incurred, but rather depreciated over the useful life of the asset. Therefore, the correct answer is d. a and b.
For example, the cost of defending or perfecting title to property and the commissions paid in purchasing securities are both considered capital expenditures for tax purposes. On the other hand, changing the oil in trucks used for business purposes is considered a regular repair and maintenance expense, not a capital expenditure.