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What are Fixed Assets?

How does the government define fixed assets? Find out which of your assets can be deemed ‘depreciable property’ and save a ton on taxes.

Fixed assets/depreciable property (1) is both tangible and intangible property used for business or held for the production of income; (2) has a determinable useful life exceeding one year; and (3) wears out, decays, becomes obsolete or loses value from natural causes.

Fixed assets/depreciable property include such tangible property as land, buildings, furniture, fixtures, office equipment, computers, and motor vehicles.  Intangible property would include goodwill, patent, franchise or trademark.

The administration and management of fixed assets can be a very complex process. As assets are acquired they need to be entered into software where they can be tracked and depreciated over their useful life. Reports and exports can then be generated to answer any fixed asset or depreciation questions.

There are 5 levels in the chart below to show the flow of processing, from top to bottom they are:

  1. Documents and import files
  2. Input processing
  3. Core fixed asset software
  4. Output processing
  5. Reports and export files

Questions? Comments? Let us know in the comments section below.

Get a free trial of our eDepreciation software or request a demo to see it in action.

Manage your fixed assets with confidence, ease and precision