capital asset


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Related to capital asset: Capital asset pricing model

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 ?
The choice of China as a location for the inaugural international office is indicative of the importance that Nippon Capital Asset Management J-LLC places on mainland China in terms of its contribution to future business development.
1) That is, the crucial factor in determining whether a given item should be classified as a capital asset is not the form of the asset, but its intended use.
A capital gain occurs when a taxpayer sells a capital asset at a profit; see Sec.
Because of the harsh criticism of these decisions, the Third Circuit reexamined the issue to clarify what property qualifies as a capital asset.
The GASB says that the guidance includes several disclosure requirements that will help financial statement users understand the nature and impact of impairment of capital assets.
15, 2004, the statement requires governments to assess major events--including physical damage, changes in legal or environmental factors and technological changes or obsolescence--affecting capital assets to determine whether they are impaired.
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.
Visitors to the site will have access to the company's excess capital asset solutions, case studies and consulting services.
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.
According to Monti, CAM-produced engineering and financial reports assist companies in determining how they can preserve and enhance the value of their capital asset portfolio.
MBIA made its original investment in Capital Asset in 1996 and increased that investment in December 1998, when it acquired the founder's interest in Capital Asset and became majority owner.
736(a) (1) would preclude classification of this as the sale of a capital asset.

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