Earning Assets


Earning Assets

An income-producing investment that is owned by a business, institution or individual. Earning assets include stocks, bonds, income from rental property, certificates of deposit (CDs) and other interest or dividend earning accounts or instruments.

Income from earning assets must be reported on the appropriate tax filings. Institutions send yearly statements for tax reporting purposes that include the total amount of interest and/or dividends earned. Income from rental properties must also be declared.

Some earning assets, such as certificates of deposit, require no additional effort once the initial investment is made. Others, such as rental properties, require ongoing effort in terms of time and money. In the case of rental property, this could include routine maintenance, improvements, taxes and insurance, and general management of the property.


Investment dictionary. . 2012.


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