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A capital asset is property that is expected to generate future revenue for a business. The distinction between capital assets and operational expenses depends largely on your business. Capital assets are the productive base of your business and this differs greatly from one industry to the next. For example, a utility company may categorize a fleet of cars as a capital asset but a car dealer might categorize cars as inventory. The following are a few common examples of capital asset.
Aircraft | Buildings | Cash | Cash equivalents | Collectibles & art | Commercial kitchen equipment | Computer hardware | Construction equipment | Data centers | Data storage devices | Display cases and shelving | Equipment | Factories | Farm machinery such as tractors | Farm structures such as silos | Furniture | Infrastructure | Laboratory equipment | Land | Land improvements | Machinery | Marketable securities | Media equipment and devices | Mobile devices | Office equipment | Power systems | Railroads and tracks | Restaurant seating and tables | Retail locations | Retail signage and displays | Security systems | Ships and boats | Software licenses | Storage facilities | Tools | Vehicles | |
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Type | | Definition (1) | A long lasting item of property that can be reasonably expected to contribute to the future profits of a business. | Definition (2) | Long-term assets that are used in the operations of a business or held for investment purposes. | Significance | Capital assets are treated differently from operational expenses for tax purposes. In general, the costs of acquiring capital assets can't by fully deducted at the time of purchase and must be amortized or depreciated over the life of the asset. | Related Concepts | |
Capital Asset
This is the complete list of articles we have written about capital asset.
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A list of common types of capital.
An overview of the common types of assets.
A guide to asset management.
A definition of information asset with examples.
A definition of asset with a few examples.
Long-lived assets that cannot be easily converted into cash.
Assets that have no physical presence.
A basic overview of money.
The definition of tangible with examples.
A list of common business equipment.
An overview of the capitalism with a list of pros and cons.
Examples for each of the four factors of production.
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