What does capital asset mean?

Definitions for capital asset
cap·i·tal as·set

This dictionary definitions page includes all the possible meanings, example usage and translations of the word capital asset.

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  1. capital assetnoun

    An asset that is recorded on a balance sheet as capital - that is, property that creates more property, such as a factory that creates shoes, or a forest that yields a quantity of wood.

  2. capital assetnoun

    An asset in the sense of accounting, but also including financial assets such as stocks or bonds.


  1. Capital asset

    A capital asset is defined as property of any kind held by an assessee, whether connected with their business or profession or not connected with their business or profession. It includes all kinds of property, movable or immovable, tangible or intangible, fixed or circulating. Thus, land and building, plant and machinery, motorcar, furniture, jewellery, route permits, goodwill, tenancy rights, patents, trademarks, shares, debentures, securities, units, mutual funds, zero-coupon bonds etc. are capital assets.


  1. Capital asset

    The term capital asset has three unrelated technical definitions, and is also used in a variety of non-technical ways. It refers to assets, including investments not held for sale, conversion or consumption# in the ordinary course of business. ⁕Here consumption does not mean use. ⁕In financial economics, it refers to any asset used to make money, as opposed to assets used for personal enjoyment or consumption. This is an important distinction because two people can disagree sharply about the value of personal assets, one person might think a sports car is more valuable than a pickup truck, another person might have the opposite taste. But if an asset is held for the purpose of making money, taste has nothing to do with it, only differences of opinion about how much money the asset will produce. With the further assumption that people agree on the probability distribution of future cash flows, it is possible to have an objective Capital asset pricing model. Even without the assumption of agreement, it is possible to set rational limits on capital asset value. ⁕In governmental accounting, it is defined as any asset used in operations with an initial useful life extending beyond one reporting period. Generally, government managers have a "stewardship" duty to maintain capital assets under their control. See International Public Sector Accounting Standards for details.

How to pronounce capital asset?

How to say capital asset in sign language?


  1. Chaldean Numerology

    The numerical value of capital asset in Chaldean Numerology is: 1

  2. Pythagorean Numerology

    The numerical value of capital asset in Pythagorean Numerology is: 9

Examples of capital asset in a Sentence

  1. Steven Judge:

    For more than one hundred years, tax law has recognized that carried interest received from investing in a capital asset is appropriately treated as capital gains, this policy is based on the American economic principles of rewarding entrepreneurial risk, long-term investment, and vision.


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"capital asset." Definitions.net. STANDS4 LLC, 2023. Web. 4 Dec. 2023. <https://www.definitions.net/definition/capital+asset>.

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