capital asset

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Capital asset

A long-term asset, such as land or a building, not purchased or sold in the normal course of business.

Capital Asset

An asset that the owner intends to hold and derive benefits from for a period of more than one year. Capital assets include long-term investments such as land and major equipment. It is difficult to liquidate capital assets, and companies usually do so when they are extremely cash poor. They are intended to help produce a business' profits and are therefore usually necessary investments. For tax purposes, one represents the value of capital assets with the "property, plant, and equipment" figure.

capital asset

An asset that has an expected life of more than one year and that is not bought and sold in the usual course of business. Buildings and machinery are examples of capital assets.

capital asset

(1) All property held by a taxpayer except inventory or goods in process. (2) All property except that held for resale to others in the ordinary course of business.

Capital Asset

Broadly speaking, all assets are capital assets except those specifically excluded by the tax Code. Major categories of noncapital assets include property held for resale in the normal course of business (inventory), trade accounts and notes receivable, depreciable property, and real estate used in a trade or business.
References in periodicals archive ?
Additions to capital assets are usually easy to determine because purchasing systems are linked to the capital asset system, or the finance staff can run reports of capital outlay account activity to determine potential capital purchases made during the year.
Green Bear's chief executive officer Rick Stanley commented that the partnership with Sunset Capital Assets will help the company broaden its market presence and boost profitability.
2005-74 is also silent on the characteristics of a home purchase program associated with the acquisition of a capital asset or ordinary income asset by the employer.
Governments are required to evaluate prominent events or changes in circumstances affecting capital assets to determine whether impairment of a capital asset has occurred.
While seemingly not recognized as a tax doctrine unto itself, there are quite a few cases scattered throughout the law which support the proposition that excess property which a taxpayer obtains as a prerequisite to obtaining a targeted property will often be treated as a capital asset.
Governments acquire a variety of capital assets to support the delivery of public services to their constituents.
Such an institution could purchase (discount) loans to all kinds of expanded capital asset associations, such as employee stock ownership trusts, consumer stock ownership trusts, community real estate investment trusts, and so on.
To effectively manage capital assets, you have to know what you've got and what condition it's in.
VFA's Capital Planning and Management Solution (CPMS[TM]) uniquely combines facility assessment services, Web-based software, and business consulting services to enable clients to manage every stage of the capital asset lifecycleCofrom requirements gathering and long-term planning to capital budget creation and spend management.
Also, capital assets are unaffected by changes in fair value, whereas items held for resale cannot be reported at more than their net realizable value.
Cash contributions to exempt public charities and private operating foundations axe generally limited to 50% of AGI; contributions of capital assets are limited to 30% of AGI.
The Taxpayer Relief Act of 1997 created a reduced 18% capital gain tax rate for capital assets acquired after 2000 and held for five years.

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