What is a capital asset?

Capital assets are significant pieces of property such as homes, cars, investment properties, stocks, bonds, and even collectibles or art. For businesses, a capital asset is an asset with a useful life longer than a year that is not intended for sale in the regular course of the business's operation. This also makes it a type of production cost.

What are business capital assets?

Overall, business capital assets are any assets that a company uses to generate income or profit over a period of time, rather than being sold immediately for a profit. These assets are typically long-term investments and they play a crucial role in the success of the business.

What are examples of capital assets?

Examples of capital assets are buildings, computer equipment, computer software, land, land improvements, furniture and fixtures, machinery, and vehicles. A capital asset is also known as a fixed asset or as property, plant and equipment. Fixed Asset Accounting How to Audit Fixed Assets