What are Capital Assets?
Tax law classifies property according to its nature and use. Most everything you own for personal, pleasure and investment use is considered a capital asset.
Examples of Capital Assets:
- Investment Property
- Art (collectible)
- Investment property exception: Property used to produce rental income is not a capital asset.
- Personal use property:
- Art (decorative)
- Your boat
- Your car
- Your coin or stamp collection
- Household furnishings
- Your personal residence
- Release of restriction on land.
- Amounts you receive for the release of a restrictive covenant in a deed to land are treated as proceeds from the sale of a capital asset.
For Freelancers and independent Contractors
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Have an accounting or bookkeeping question? Email it to me.
- Return to the Capital Gains and Losses Table of Contents to find related links.