is capex tax deductible 
capital expenditures aren t directly tax deductible but they can indirectly reduce a company s taxes through the depreciation they generate a company could include 100 000 of depreciation expense each year for 10 years if it purchases a 1 million piece of equipment with a useful life of 10 years this depreciation would reduce the company s pre tax income by 100 000 annually reducing its income taxes 14