What's a capital asset?
Just about everything you own and use for personal or investment purposes is a capital asset, for example:
Personal investment property, stocks, bonds, and mutual funds
Real estate or property that isn't rented out or used for business
Your dwelling, furniture, appliances, clothing, and personal car
Collectibles, such as a coin or baseball card collection
Common items that aren't used for personal or investment purposes (and are therefore not considered capital assets) include:
Equipment, vehicles, and real estate used for or by your business
Business inventory and accounts receivable
Artwork, musical compositions, and literature you created (or were gifted/inherited from the artist)
The part of your house that you use and depreciate as your home office, if it qualifies for a home office deduction
Rental property
Note: Not all assets are treated the same for tax purposes. Some assets fall into a special category called listed property.
