Question

what is land capitalization ​

Answer 1

When your business buys a piece of real estate, it depreciates the building, because buildings have a finite life, but it can't depreciate the land, because land is generally considered to have an unlimited life.

Answer 2

Assets that your business can't depreciate or amortize just get capitalized. Land is an example of this. When your business buys a piece of real estate, it depreciates the building, because buildings have a finite life, but it can't depreciate the land, because land is generally considered to have an unlimited life.

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