AI$/$CT$11-75($LO $11-2)$

Assume you asked your favorite AI learning tool "Would a taxpayer classify a car used for business as a capital asset for tax purposes?" and the AI tool responded as follows:

A capital asset is a long$-$term asset acquired for the purpose of generating income or for use in the operations of a business. So yes, a car used for business purposes, such as transportation, deliveries, or other work$-$related activities, is typically considered a capital asset.

For tax purposes, the classification of a car as a capital asset determines how gains or losses from the sale or disposal of the car are treated. A car is used for business would generally be considered a capital asset, and any gain or loss from its sale would be subject to capital gains tax treatment. However, if a car is used for personal purposes and not for business, it may not be considered a capital asset for tax purposes, and any potential gain or loss upon sale may not be subject to capital gains tax.

Since tax laws change periodically, it's important consult a tax professional or accountant for specific guidance on the tax treatment of a car as a capital asset in your situation.

Is the AI response correct? Explain.