capital asset

capital asset definition - business

capital asset

  1. 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.
  2. In taxation, an asset such as shares of stock held for investment purposes. Gains and losses realized from the sale of capital assets are subject to special tax rules.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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