Which of the following is a capital asset?
A)A camera used in a trade or business
B)A computer held for sale to customers
C)A taxpayer's principal residence
D)An account receivable from a client of an attorney

Question

Quizplus · Accepted Answer

A capital asset is typically a long-term asset that a person holds for investment purposes or to enjoy for personal reasons. A taxpayer's principal residence is considered a capital asset if it's held for investment or personal purposes. Options A and B are used in a trade or business and are therefore considered "ordinary and necessary" expenses rather than capital assets. Option D is not a tangible asset but rather an accounts receivable, which is not a capital asset.

Which of the Following Is a Capital Asset