What are capital assets?

A capital asset is a property held by an assessee, which can either be connected to a business or not connected to a business. This can include stocks, land, buildings, homes, cars, and some collectibles and art. They are considered any significant piece of property.

Capital assets may be tangible or intangible, but they are often tangible, as they are often related to buildings and land. Capital assets are typically more useful in the long term than ordinary assets valued in a company's day-to-day operations.