Capital Assets

About Capital Assets:

all property held for investment by a taxpayer that, when sold, is subject to special tax treatment (as capital gains or capital losses). For an individual a net long-term capital gain is taxed at a maximum of 28% during 1993- Inventory, property held for resale, real or personal property used in a trade or business, copyrights in certain instances, and certain U.S. government obligations are not capital assets. The Internal Revenue Code does not define what a capital asset is-only what it is not (Former IRC (check if this IRC provision is current here) §1221). Also the tax-code definition of capital asset differs significantly from the definition used in economics.

U.S. and other Developed Countries International Tax Meaning

All property held for investment by a taxpayer.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.