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Capital Assets and Special Rules for Individuals

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Why are capital assets subject to special rules for individuals? What are the rules and what is the tax impact?

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This solution discusses why capital assets are subject so special rules for individuals.

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Individual capital assets have special rules because they are personal assets and their value often changes throughout time and their value received when selling or exchanging the asset for another can either increase or decrease (National Timber Tax Website, N.D).

One of the special rules that personal capital assets are subject to include the fact that a capital asset holder can offset a sum up to $ 3,000 of capital loss against other income that are non capital. ...

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