Since the Code defines what a capital asset is not,often the courts have to help determine what is and what is not a capital asset.

Question

Quizplus · Accepted Answer

The statement is true. The Code provides certain exclusions for capital assets such as inventory, depreciable property used in a trade or business, etc. However, there are still uncertainties as to what constitutes a capital asset, and courts may need to provide guidance and interpret the law in specific cases.

Since the Code Defines What a Capital Asset Is Not,often