3 ms·

>Capital expenditures aren't subtracted from revenue. They have no effect on profit. This is a cheap slight of hand to confuse unsophisticated readers. It has

• Aloisius 1y ago
  > since much of cap ex is deductible Since when? Last I checked, capex was not deductible. You can deduct depreciation of assets over time, but that's not going to offset profit to create a loss unless you're spending far more money than you profited (by say, taking out loans). There is the expiring bonus depreciation provision on a limited limited class of assets which would let you create a loss, but even that's subject to recapture if you sell those assets.