Capital Assets

• The term "property," as defined by the IRC, refers to many items covered under the title of capital assets. Capital assets include personal and business assets held by a taxpayer. Some exclusions apply, including inventory, copyrighted intangible material, business supplies and U. S. government publications. All personal assets, such as real estate, bonds, and investment accounts are considered property and filed under capital assets by IRC regulation.
  
  

Business Property

• Business property, as defined by the IRC, is all real or physical property used in the taxpayer's business or trade organization. Once the property begins to depreciate in value, it is no longer considered property by the IRC. This includes mining products harvested from the ground, goods bought and then returned, and other items that may lose value once removed from their place of origin within the business.
  
  

Goodwill

• A goodwill value is the amount of a property value that is deferred. This amount is not considered property according to the IRC. When accounting for the sale of a property, the goodwill amount is considered intangible. Therefore, the gross receipt of a sale including a goodwill amount is not considered property under IRC. Also, because of the goodwill amount, the transaction must be considered a sale and cannot be seen as a transfer of assets.