ACCO 340 Lecture Notes - Lecture 7: Weighted Arithmetic Mean, Deferral, Luxury Vehicle
25 Jan 2017
School
Department
Course
Professor
Document Summary
Capital gain: proceeds of dispostiton acb selling expenses. Everything paid to make assets ready for use & in the proper location. When calculating the cost of selling share, weighted average is used. Average weight cost = total cost / total # shares. Selling shares at a loss and repurchase within 30 days. Loss is denied, therefore cannot be deducted. Loss is added back to the cost of the remaining shares. Fair market is 400,000$ and paid cost is 100,000$ Cg= pod acb = 400k 100k = 300k. Lesser of (capital gain / total proceeds) * account receivable. 20% of the gain * (4 - # of preceding years) Any non collection is bad debt expense. The bad debt expense becomes a capital loss. Replace within 2 years, taxes will be refunded by deferring capital gain until you resell building later on. Defer paying tax on cg as long as you purchase another cie.
