Capital Assets Legal Meaning and Definition

Here is a simplified definition of the legal term Capital Assets.

Capital Assets (noun): These are long-term assets owned by a business or individual, like land, buildings, or machinery, which are used over time to generate income. They are not intended for sale in the regular course of business but to help in producing goods or offering services. The value from these assets is typically received indirectly and stretches over a lengthy period. For example, a factory's equipment is a capital asset that helps produce goods for many years.