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  3. Is a vehicle a capital asset?

Is a vehicle a capital asset?

Motor vehicles are normally classified as a capital asset. Equipment includes:

  • lab equipment
  • furniture
  • motor vehicles
  • machinery not affixed to a building/infrastructure

Since most vehicles meet the following criteria, they are tagged and capitalized:

  • Cost of $5,000 or greater for a single piece of equipment
  • Items that will last two or more years

Need to dispose of a motor vehicle?

As is required per State Regulations, all assets, capital or non-capital, purchased by a state entity, must be disposed of through the University Surplus Property Office; they cannot simply be thrown away! 

Due to the size of our university, the state has authorized and allowed NC State University to create its own internal surplus group to handle these disposals.

The NC State Surplus Group is administered by Surplus Property Services, part of Procurement & Business Services.  

For additional details, see Asset Management and Surplus Manual.

See related article:

What is considered equipment and associated costs?

Updated on August 3, 2021

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