Fixed Assets - EBS (MOSC)

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Defer Capital Gain calculation

edited Mar 26, 2013 12:26AM in Fixed Assets - EBS (MOSC) 2 commentsAnswered
Hi

In a situation for an Organization in the United States of America, which is disposing an asset and is looking for an alternative asset purchase to claim capital gain tax rebate on the sale proceeds will generally have a waiting period of 6 months to identify and complete the purchase of the Replacement Asset, so that the Company can claim the tax benefit.

If the 6 months of waiting period is generally within the same fiscal year, then it is not a problem to handle such situation.

BUT, if the said 6 months period extends beyond the current year, what should be the ideal way of handling such situation. Is it an ideal way to keep the books of the current year open until the 6 months period is completed to actually compute capital gain on the disposed asset and pay tax OR if there is a better way to handle it?

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