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    What is a capital asset; should it be taxed?

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    First, define what a capital asset is. How is it defined in the code?

    You Decide: Tax Capital Gains?

    © BrainMass Inc. brainmass.com June 4, 2020, 1:52 am ad1c9bdddf

    Solution Preview

    A capital asset has many different definitions, depending on whether you are thinking of an accounting, an economic or a tax perspective.

    In financial accounting, capital assets are those that last for years. These are depreciated over their useful life and generate business income (hopefully).

    In economics, a capital asset is one that is used to make money. ...

    Solution Summary

    This solution is 243 words plus a reference and discusses the accounting, economic and tax definition of a capital asset and how they are related.