Qualifying goods or equipment may be considered as capital when supported by ownership, value and business-use evidence. Assets transferred to the United States can be relevant; an unsupported equipment list is insufficient.
Explain the contribution in context
Show that the equipment is or will be used in an ongoing commercial enterprise and is contributed by the investor under a documented arrangement. Distinguish personal property, leased items and enterprise-secured borrowing. The equipment contribution must fit the overall substantiality, risk and operating-readiness analysis.
Owning valuable machinery does not independently establish a qualifying business or the investor’s authority to direct it. Answer the questions in a fixed order and the equipment case largely writes itself. Ownership first: what does the investor own, under what instrument, and is any part financed or shared.
Contribution second: by what documented arrangement does the asset pass to the enterprise. Use third: what commercial activity does it enable. Hypothetical example: an investor contributes blast-freezing units to a new repacking enterprise.
Establishing that the units were bought in the investor own name, transferred to the company under a recorded arrangement and installed at premises the company occupies produces a coherent contribution. Establishing only that the units exist does not. Keep the governing conditions in view throughout: the investment must be substantial in proportion to the enterprise, irrevocably committed and at risk, the enterprise must be real, operating and not marginal, and the investor must develop and direct it.
Valuable machinery alone satisfies none of those.