Capital Assets
/ˈkæpɪtl əˌsɛts/
Definitions
- (n.) Property owned by an individual or business that is significant for tax or accounting purposes and not intended for immediate sale.
The sale of capital assets may trigger a capital gains tax liability.
- (n.) Assets such as buildings, machinery, or land used in the production of goods or services, valued on a balance sheet.
Capital assets appear as fixed assets on the corporation's financial statements.
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Commentary
In legal contexts, capital assets usually refer to property subject to capital gains treatment; definitions can vary by jurisdiction and purpose (taxation vs. accounting).
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.