Is a home an asset or liability?

[fasternyou929]

Originally Posted by t-rock

The way I have always been taught (by parents and as a finance major) an asset is something that will gain money for you and a liability is something that will lose you money.

I think you may have misunderstood what they were saying. I paid cash for my bike, which loses value every year. It will NEVER make me money (no matter how fast I turn laps at track days), but it is an asset because it's worth more than I owe on it.

What you stated above makes sense in an "if I sold this item right now" scenario. If it would make you money to sell it right now, it could be viewed as an asset.

IMO, of course. The real definitions of asset vs. liability are actually much less grey than that.