Suppose you asked your favorite AI query tool the following question: "For purposes of Section $721,$ what constitutes property?" and the AI tool responded as follows:

As of my last knowledge update in January $2024,$ the Internal Revenue Code $721$ relates to the non$-$recognition of gain or loss on contributions to a partnership. Section $721$ allows a taxpayer to contribute property to a partnership without recognizing a gain or loss on the transfer. The term "property" in this context is broadly defined and includes not only tangible assets but also intangible assets and certain liabilities.

Property, for purposes of $721,$ typically includes:

Tangible Property: Physical assets such as real estate, machinery, equipment, and inventory.

Intangible Property: Non$-$physical assets such as patents, copyrights, trademarks, goodwill, and other intellectual property.

Cash and Cash Equivalents: Money, bank deposits, and other liquid assets are generally considered property for $721$ purposes.

Securities: Stocks, bonds, and other financial instruments.

Liabilities: Certain liabilities assumed by the partnership may also be considered property for $721$ purposes.

It's important to note that the specific details and interpretations of tax law can change, and there may have been updates or changes to the tax code since my last knowledge update in January $2024.$ Therefore, it is advisable to consult the latest version of the Internal Revenue Code or seek advice from a tax professional to ensure compliance with current regulations.

Is the AI response correct? Explain.