Which of the following is included as a capital asset?

A capital asset is defined as property owned for personal use or investment purposes, which can potentially appreciate in value. This includes items such as personal property (like a personal auto) and investments (like stock and bonds), which are typically held for either personal enjoyment or to generate income through capital gains.

In contrast, inventory held for resale is not considered a capital asset because inventory is intended for sale to customers as part of business operations. Any property used in a business context generally falls under different tax treatment, typically being categorized as business assets rather than capital assets. Lastly, cash held in bank accounts does not qualify as a capital asset either; it is considered a liquid asset, but not an investment in the capital sense, as it does not appreciate in value in the same manner as investments might.

Thus, the inclusion of the personal auto and investment assets like stock and bonds as a capital asset reflects their role in both personal and investment portfolios, distinguishing them based on their appreciation potential and personal usage.