What Are the Different Types of Capital Assets?

Capital assets refer to a portion of property that is defined as capital assets in tax law, such as real estate, machinery, equipment, ships, aircraft, stock and bond investments.

Capital assets

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Capital assets refer to a portion of property that is defined as capital assets in tax law, such as real estate, machinery, equipment, ships, aircraft, stocks, and bond investments.

The specific items of capital assets vary from country to country, and may vary from country to country during different periods. For taxpayers, capital asset management is very meaningful. Because in order to encourage investment, encourage capital investment in emerging industries, accelerate capital turnover, increase investment, and stimulate economic growth, tax benefits are generally given to capital gains (see "capital gains") in tax laws. Thereby reducing the income tax burden. Capital assets are different from asset classifications required by accounting standards and accounting systems.