Question

Which of the following types of assets does NOT qualify as a capital asset?

A) Assets classified as "personal use"

B) Assets used in a trade or business

C) Assets held as investments

Answer 1

Assets classified as "personal use" do not qualify as capital assets.

Step-by-step explanation:

A capital asset is a type of asset that is used in the production of other goods and services. Assets classified as "personal use" do not qualify as capital assets. Personal use assets are typically items that are not used in a trade or business, such as a car or a home for personal use.