Taxes: Negative Gains Tax

Under what circumstances would you have a negative gains tax, i.e., when would the government pay you on the sale of an asset?

Question options:

  • If you sold the asset for less than the book value.
  • If you sold the asset in the first quarter of the year rather than the second half of the year.
  • If the tax rate increased in the year of sale.
  • If you sold the asset for more than the book value.

Answer:

  • If you sold the asset for less than the book value.

This may show up under the name 'Depreciation Recovery' as well.

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License