Asset

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Asset

Real or Personal Property, whether tangible or intangible, that has financial value and can be used for the payment of its owner's debts.

An accrued asset is one that arises from revenue earned but not yet due. For example, an accrued dividend is a share of the net earnings of a corporation that has been declared but has not yet been paid out to its shareholder(s).

In Bankruptcy, an asset is any form of property owned by a debtor who is insolvent that is not exempt from being used to repay debts.

For Income Tax purposes, a capital asset is property held by a taxpayer for personal enjoyment or investment, such as a home, furniture, stocks and bonds, or an automobile, but does not include inventory, commercial accounts, and notes receivable, depreciable property, commercial property, copyrights, and short-term government obligations. When a capital asset is sold, any gain received is given preferential tax treatment.A current, liquid, or quick asset is an item that can be readily converted to cash, such as stocks and bonds.

A fixed asset is one of a permanent or longterm nature used in the operation of a business and not intended for sale.

A frozen asset is one that cannot be easily converted into cash, such as real estate when there is no market, or that cannot be used because of a legal restriction, such as a spend-thrift trust.

An intangible asset is one to which an Arbitrary dollar value is attached because it has no intrinsic market value but represents financial value, such as the good will of a business, Trademarks, or Patents.

asset

n. generally any item of property that has monetary value, including articles with only sentimental value (particularly in the estates of the dead). Assets are shown in balance sheets of businesses and inventories of probate estates. There are current assets (which includes accounts receivable), fixed assets (basic equipment and structures), and such intangibles as business good will and rights to market a product.

See: advantage, chattel, holding, item, possession, property, resource, share, stock
References in periodicals archive ?
Therefore, Mr Harrison points out that leaving the qualifying business assets to the surviving spouse or civil partner can 'waste' the relief if the business is subsequently sold because after the sale proceeds no longer attract BPR on the death of the second partner.
The chancellor has indicated that he proposes to improve the rate of business assets taper relief (BATR) from 6 April 2002, so that the 10 per cent rate is achieved after two complete years of ownership.
For AMT purposes, the program computed a significant difference for adjusted gains and losses on the sale of the business asset, which may have been partially due to missing required AMT depreciation input.
By April 2000, the definition of business assets was very wide, including shares in unquoted trading companies, most employee owned shares and many AIM shares.
We suggested that the best way to achieve this was to separate the tax treatment of business assets and non-business assets, and continue the pre-PBR rules for CGT on business assets.
General business asset class property consists of certain specified generic classes of tangible personal property.
Applying the 40% higher rate of tax for capital gains to the tapered gain gives an effective rate of tax of 10% for business assets after two years of ownership.
From April 6, an individual who has owned a business asset for only two years could therefore keep as much as 90 per cent of the proceeds.
More likely, the IRS viewed the holding company's ownership of stock in the operating subsidiary as a historic business asset of the holding company that the subsidiary somehow continued after its acquisition of the holding company's assets.
Equally, shareholdingsin companies that have high levels of investment income or investment assets may not qualify for the better business asset taper.
Numerous smaller businesses will have welcomed proposals in the Autumn Statement which broaden the scope of capital gains tax business asset taper relief.
Thus, for example, if a corporation has nonliquid trade or business assets valued at $100 and cash of $10, the corporation may consider $5 of the cash as a trade or business asset, so that the corporation has trade or business assets totaling $105.

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