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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

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.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
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