Capital asset is a tangible property that is owned and is likely to remain in the possession of the owner for an extended period of time. This is permanent in nature and is utilized as part of a revenue generating process, such as the operation of a business. Land, building, machinery, and equipment are classic examples of capital assets. The benefits acquired from these assets last for longer duration (more than one year) and extend up to 15-20 years in the case of certain assets