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)
    • Bonds
    • Coins
    • Gems
    • Gold
    • Land
    • Silver
    • Stamps
    • Stocks
      • 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
    • Jewelry
    • 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.

File your personal and small business taxes (Schedule C)