Tangible personal property refers to any physical assets that can be seen, touched, or felt and is owned by an individual or a business entity. It encompasses movable items that have value and are not considered real estate or real property.
This category includes various objects that possess a physical form and can be moved or transferred, such as vehicles, furniture, machinery, equipment, electronics, artwork, collectibles, and other similar items. These items are often acquired for personal use, decoration, or productive purposes rather than for investment or speculation.
The term "tangible" denotes something that is perceptible to the senses or physically existent. It distinguishes tangible personal property from intangible assets like intellectual property, financial securities, patents, copyrights, trademarks, or licenses, which do not have a physical presence. However, certain intangible assets might be classified as tangible personal property if they can be physically embodied, such as a printed book or a software CD.
Tangible personal property is subject to ownership, possession, transfer, and often taxation. It is valuable as it can be bought and sold, used as collateral for loans or mortgages, or disposed of through various means. This category of property can be insured against loss or damage, and its value may appreciate or depreciate over time based on market fluctuations, condition, demand, or other factors influencing supply and demand.
