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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
Under the proposed regulations, spinoffs would not qualify for tax-free treatment where the nonbusiness assets of either Distributing or Controlled have a fair market value (FMV) that is too high in relation to the FMV of the corporation's business assets. In the example above, the hot dog stand worth $20,000 would not support a tax-free spinoff when coupled with $2 million of nonbusiness assets.
"Even if you don't have business assets, there are other planning arrangements which can, over time, cut the eventual IHT bill.
Trading companies whose shares are to be business assets must not have any non-trading activities if these are capable of having a "substantial" effect on the nature of the company's activities.
Business assets: Czechoslovakia has a long history of business success.
The final problem can be to make sure that the asset does qualify as a business asset used in the trade of racing.
"The next stage is surely to abolish CGT on business assets altogether, and we would support this wholeheartedly, " added Mr Clements.
The AMT adjustment for sale of business asset is higher than normal, which may be the result of missing required input for AMT depreciation.
General business asset class property consists of certain specified generic classes of tangible personal property.
"Until now loan notes have benefited from business asset taper relief when repaid, thus restricting the effective rate of Capital Gains Tax to ten per cent.
This would reassure both existing business asset holders and prospective investors, and stem the flow of panic selling before the April 2008 deadline.
The tax now applies to capital gains irrespective of whether the asset is a business asset (private company shares, assets used by a business) or a non business asset (second homes, investments).
Furthermore, non-business assets, which is everything which does not qualify as a business asset, also benefit from a reduced rate of tax depending on the length of ownership of the asset.

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