Capital Assets
Definition:
Capital Assets are all types of property that are held by a company for investment and useful business purposes. Capital assets are those assets used by the business to make a profit.
While most types of property are considered capital assets, including:
Some types of business property are not included in the definition of capital assets:
Capital Assets are all types of property that are held by a company for investment and useful business purposes. Capital assets are those assets used by the business to make a profit.
While most types of property are considered capital assets, including:
- property for sale to customers or merchandise
- intellectual property
- accounts receivable or notes receivable
- Depreciable property (equipment and vehicles, for example) used in your business
- real property (land and buildings) used in your business.
Some types of business property are not included in the definition of capital assets:
- raw materials
- stocks and bonds
- personal property.
