Glossary of Tax Terms: Asset

In the tax world, the term “asset” often comes up.

An asset can refer to a broad variety of property.

For a business, the term “asset” typically means something the business purchases that has a useful life of more than one year (equipment or land, for example).

For individuals, an asset typically means things like houses and stocks. Technically, things like furniture are also considered assets for tax purposes, too.

The tax treatment of assets also varies widely. Businesses can often take depreciation deductions against the purchase price of the asset (though land cannot be depreciated). Individuals may have a capital gain to report when they sell an asset.

For more tax terms, check out the “Glossary” link along the top of this website.