Hello Bob,

Thanks for taking the time to get an answer off to me. I had done some in-depth research, when started working with this client, to determine the classification of his purchases. I wish I had saved my sources. I usually do, but did not in this case. He is a doctor and he buys the rights to accident settlements by paying the surgery center which performed operations due to injury. These are not for resale, they are held until a final settlement is paid. If no settlement is reached, then he gets nothing. These are speculative in nature. My research indicated it was a very close call as to inventory or capital asset. Based on some specific detail in my research I felt capital asset was appropriate. But I can't recall the detail or seem to find where I found that since I've looking again for the last half hour. For one thing, it has investment qualities since the final price is not determined at the time of purchase, but hoped to be an increase over the value paid. Another thing, it does not seem to fit the inventory definition because it is not for sale to customers. The final document is either disposed when money is received as a final settlement, or written off as bad debt loss if nothing is received. Please let me know your thoughts after reading this. Your input is appreciated.