Capital Assets

Capital assets are long-term resources owned by an individual or a business that are used to generate income or support operations. Examples include properties, machinery, vehicles, and equipment. Unlike everyday expenses, capital assets are not quickly consumed; they provide value over time. When sold, they may be subject to capital gains tax, which applies to the profit earned beyond their original purchase price. Proper management of capital assets is crucial for financial health, as they often represent significant investments and can influence a company's capacity for growth and profitability.