Relativity of simultaneity: Difference between revisions

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The situation of additional [[tax]]es or tax savings resulting from selling the last item of its class in an [[inventory]] due to difference between its [[depreciation|undepreciated]] [[capital cost]] (UCC) and its [[salvage value]] (SV).<ref>Chan S. Park et al., ''Contemporary Engineering Economics (Second Canadian Edition)'', Addison Wesley Longman, 2001. ISBN 0-201-61390-5</ref>
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==Overview==
 
"Disposal tax effect" is a [[finance]] term originating from [[Engineering Economics]].
 
In the case of <math>SV > UCC</math>, then there has been a relative gain in the sale of the item, which gets taxed. These gains are known as "recaptured [[depreciation]]" or "recaptured CCA".  
 
When <math>SV < UCC</math>, then there has been a loss, which results in tax savings.
 
==References==
<references/>
 
[[Category:Finance]]
[[Category:Taxation]]
 
 
{{econ-policy-stub}}

Latest revision as of 23:04, 9 December 2014

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