What is meant by “original capitalized cost”?
A. This is the actual cost of the business tangible personal property before any allowance for depreciation. It includes all costs associated with putting an asset into use (such as sales tax, delivery and freight charges, installation, labor, etc.). If the property was expensed under Section 179 of the IRS Code, its original capitalized cost is the amount that was expensed for federal tax purposes.
