My business has capital assets, including office furniture, equipment and vehicles. I sold these assets during the year and my accountant told me that I have a capital gain. What does this mean?
Selling assets can trigger a capital gain or capital loss based on the selling prices minus the original cost. If the selling price exceeds the original cost, it’s reported as a capital gain for accounting and tax purposes.
If the selling price is less than the original cost, it’s a capital loss for accounting and tax purposes. Capital gains are 50% taxable for taxation purposes. Capital losses can be applied to reduce capital gains.
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.