Capitalization rate

Capitalization rate

Capitalization rate is the rate of interest that is considered a reasonable return on the investment used in capitalization net income to determine the value of the property.

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Part of Speech: noun
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Industry/Domain: Financial services
Category: Real estate investment
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capitalization rate

Financial services; Real estate investment

Capitalization rate is the rate of interest that is considered a reasonable return on the investment used in capitalization net income to determine the value of the property.

capitalization rate

Banking; Investment banking

See capitalization.

capitalization rate

Financial services; General Finance

The rate of interest used to calculate the present value of a number of future payments.

capitalization rate

Accounting; Tax

The rate of interest used to discount the future income from a property to arrive at a present value

capitalization rate

Real estate; General

A method used to estimate the value of a property based on the rate of return on investment.

capitalization rate

Banking; Business services; Mergers & acquisitions

The discount rate used by practitioners if the cash flows of the firm are not expected to grow or are expected to grow at a constant rate indefinitely.

accelerated cost recovery system (ACRS)

Financial services; Real estate investment

Before 1981, assets used for the production of income were depreciable if they were subject to wear and tear or decline due to natural causes or obsolescence. Assets that did not ...

accelerated depreciation

Financial services; Real estate investment

Accelerated depreciation is a method of depreciation in which larger deductions are taken earlier in the life of the asset than with the straight-line method. Examples include the ...

account

Financial services; Real estate investment

An account is a written record of a business transaction expressed in money and kept in a ledger.

accounting principles

Financial services; Real estate investment

Accounting principles refer to an accounting doctrine that explains current practices and is a guide for the selection of accounting conventions or procedures when alternatives ...

accrued depreciation

Financial services; Real estate investment

Accrued depreciation is the difference between the cost of replacing new property and the present market value of the property.

active income

Financial services; Real estate investment

Active income is all taxable income of a taxpayer except income from a passive activity and portfolio income. Passive activity is something in which the taxpayer does not actively ...

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