- capital assets
Assets which are held other than as trading assets.+ capital assetsUSAAll property held by a taxpayer unless specifically excluded under the IRC (IRC § 1221(a)). The following types of property are generally excluded from the definition of capital asset:• Stock in trade or other inventory property.• Property held primarily for sale to customers in the ordinary course of business.• Depreciable property used in a trade or business.• Real property used in a trade or business.• Certain copyrights, literary, musical or artistic compositions or other similar properties.• Accounts or notes receivable acquired in the ordinary course of a trade or business for services rendered, or from the sale of property described above in the first two bullets.• Certain US government publications.• Commodities derivative financial instruments held by commodities derivatives dealers.• Any hedging transaction.• Supplies of a type that are regularly used or consumed in the ordinary course of a trade or business.Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.