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 ?
(10.) GFOA, Establishing Appropriate Capitalization Thresholds for Capital Assets (Recommended Practice).
Impaired capital assets that will no longer be used by the government should be reported at the lower of carrying value or fair value.
Keywords: Asset Pricing Theory, Capital Asset Pricing Model (CAPM), Pakistan Stock Exchange (PSX), Return on Securities
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.
Ignoring some details and exceptions, [section]1234A generally provides that gain or loss attributable to the cancellation, lapse, expiration, or other termination of a right or obligation with respect to property "which is (or on acquisition would be) a capital asset" in the hands of the taxpayer is treated as gain or loss from the sale of a capital asset.
Capital asset is defined to include property of any kind excluding stock-in-trade, personal effects, agricultural land and certain specified bonds.
1234A was revised in 1997 to provide, in part, that "gain or loss attributable to the cancellation, lapse, expiration, or other termination of (1) a right or obligation (other than a securities futures contract, as defined in section 1234B) with respect to property which is (or on acquisition would be) a capital asset in the hands of the taxpayer ...
30 July 2013 - US financial services firm Sunset Capital Assets Inc (OTCMKTS:SSBN) said it had wrapped up the takeover of automotive sales and finance company Green Bear Solutions LLC.
Green Beara[euro](tm)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.
Capital Assets owns the 120-unit flagstone Creek project in Bentonville and more than 200 units at The Reserve at Steele Crossing in Fayetteville.
These include lack of funding options, the reluctance of banks to accept credit requests, difficulty in obtaining funding from banks, and other obstacles which are a direct result of the inability of new businesses to utilize their capital assets as guarantees due to the lack of a special entity to register these assets.

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