A tax loss on the sale of a depreciable asset used in business or trade may be written off against income.

Question

Quizplus · Accepted Answer

This is true. A tax loss on the sale of a depreciable asset used in business or trade may be written off against income. This is known as a capital loss and can be used to offset capital gains or deducted from ordinary income up to a certain limit. This helps to reduce the tax burden for businesses and encourages investment in assets needed for business operations.

A Tax Loss on the Sale of a Depreciable Asset