New Asset Law and Legal Definition
The new asset is regarded as compensating value for the old asset. It is considered a substitution of assets, and operates to prevent a loss deduction of the unrecovered cost of the asset destroyed in the year where the demolition takes place. New asset also refers to a property that the executor receives after the time has expired to file claims against the estate.
In Minnesota Tea Co. v. Commissioner, 28 B.T.A. 591 (B.T.A. 1933), it was held that a new asset is acquired with each premium payment. After a dissolution decree, that asset is the individual property of the person paying the premium for the next premium period.