Sale of Business Assets-Short Term or Long Term?

Transcript

Exception For Business A ssets, Dep C harged, so it is always Short Term C apital Gain Car purchased in Jan 2016 500000 Depreciated Value of Car in Books 80000 Sold in Mar 2020 100000 Period of Holding is 4 years It is More than Period of 36 Months But Still we will Calculate Short Term Capital Gain (because it is a Business Asset Short Term Capital Gain = 100000 − 80000 = 20000 Note We have Assumed that this is Car used in Business if it was Personal Car, There will not be any Capital Gain as it is not a Capital Asset