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Capital Assets are All property held for investment by a taxpayer. In US tax accounting, it is defined as any property other than a list of exceptions. The main exceptions are anything held for sale, and any real estate or depreciable property used in business. Almost everything a person own and use for personal purposes, pleasure or investment is a capital asset. If something is a capital asset for tax purposes, gains or losses on sale or disposition are capital gains or capital losses. For individuals, however, capital losses on property held for personal use are generally not deductible.