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.
