Taxable capital gains, deductible capital losses

Selling a fixed asset is a rather rare operation 💎. It marks the transfer of the asset by the business (individual or company). You issue a sales invoice to the buyer. Then, the final result of the operation gives rise to a capital gain or loss.

Let's imagine an asset initially purchased for €10,000, depreciated to €6,000 (current book value €4,000) and resold for €5,000. What will the capital gain be? The sale of this asset generates a capital gain of €1,000 (€5,000 - €4,000). This capital gain is included in your income and will be taxable.

Note that this article does not apply to the sale of privately held property (outside the business).

💡 At the time of sale, the capital gain or loss will be taxable or deductible depending on the deductibility of the asset prior to its sale. If the asset was partially deductible, the capital gain will be partially taxable (and the capital loss partially deductible). Logically, I was deducting 70% of my car depreciation. When I sell it, I'm taxed on 70% of the capital gain.