Without going into too much detail, contractors will be hired typically to contribute to capital expenditure and employees to the latter.
That doesn't make any sense. In any situation in which a contractor expense would be capitalized, an employee's salary would also be capitalized. Labor costs are labor costs; whether someone is a contractor or an employee is a labor law issue, not a tax issue. (Internal R&D was the big exception to the capitalization rule, but that loophole was closed, which is what prompted a lot of tech and videogame layoffs over the past 2 years.)
That doesn't make any sense. In any situation in which a contractor expense would be capitalized, an employee's salary would also be capitalized. Labor costs are labor costs; whether someone is a contractor or an employee is a labor law issue, not a tax issue. (Internal R&D was the big exception to the capitalization rule, but that loophole was closed, which is what prompted a lot of tech and videogame layoffs over the past 2 years.)