Which category does Real Property fall under as defined by tax principles?

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Real Property falls under the category of physical land and buildings in tax principles. This classification indicates that real property encompasses both the land itself and any structures that are permanently attached to it, such as homes, commercial buildings, and other types of real estate. In the context of taxation, real property has distinct implications for tax assessments, ownership rights, and potential income generation through rental or sale.

Understanding real property as a tangible asset is important for tax purposes because it is subject to property taxes, which are levied based on the assessed value of the land and improvements. This classification differentiates it from movable assets, financial securities, and intangible assets, which have different tax treatments and considerations.

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