Capital Asset

A capital asset refers to a significant resource that a person or business owns and uses for generating income or value over the long term. This can include physical items like real estate, machinery, or vehicles, as well as intangible assets like patents and trademarks. Capital assets typically require a substantial investment but contribute to the overall wealth and operational capacity of an individual or organization. When sold, they may generate capital gains, which can be subject to taxation. Essentially, they are crucial for growth and financial stability.