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