Dictionary

Cash Flow

Definition: The resulting amount when an annual debt service, tax liability, and capital improvement costs are subtracted from net operating income. Pronunciation: Used in a Sentence:   Due to increased operating costs,...

Capitalization Rate

Definition: The relationship between the new income from a real estate investment and the present value. Pronunciation:\ˌka-pə-tə-lə-ˈzā-shən\ Used in a Sentence:    The capitalization rate applied to the building is 10...

Capital Gain

Definition: The profit from the sale of an asset, including real property. Pronunciation: \ˈka-pə-təl, ˈkap-təl\ \ˈgān\ Used in a Sentence:   The tax on the capital gains from the sale of the property was...

Capital-deficit Area

Definition: A region where the total amount of local savings is not adequate to finance economic development already in progress in that area. Pronunciation: \ˈka-pə-təl, ˈkap-təl\ \ˈde-fə-sət\ Used in a Sentence:  Due to...

Capital Asset

Definition: Certain property held by a taxpayer, not including inventory for sale to customers. Pronunciation: \ˈka-pə-təl, ˈkap-təl\ \ˈa-ˌset also -sət\ Used in a Sentence:   The manufacturing facility had a large number of capital...

Capital

Definition: The collective assets (money and property) that add to the long-term net worth of a corporation. Pronunciation: \ˈka-pə-təl, ˈkap-təl\ Used in a Sentence: Due to a large amount of cash deposits the...