Capital asset

A capital asset refers to a significant piece of property or equipment that a business or individual owns and uses in their operations to generate income, rather than being held for resale in the normal course of business. Capital assets can encompass a wide range of items, including: 1. **Real Estate**: Land and buildings used for business operations. 2. **Machinery and Equipment**: Heavy equipment, computers, vehicles, and tools used in the production of goods and services.