A capital asset , even real estate that can appreciates in value, is
depreciated on the books for tax purposes. Therefore the corporation is
getting the tax write off each year until the asset is fully depreciated.
When the asset is sold off in the future, capital gains is owed on the final
value. Think of it as paying back the tax writeoffs the corporation
collected earlier.

Now that the accounting lesson is over, perhaps you can explain how capital
gains tax increases the cost for Starrett to manufacture its products???? Or
are you just parroting Rush Limbaugh and Sean Hannity???


"Doug Miller" wrote in message
. ..
In article , "Tony" wrote:

"Doug Miller" wrote in message
. net...
In article , "Tony"
wrote:
You only pay capital gains tax when you sell an asset that has been
depreciated.

APpreciated...

Doug,

The book value of capital assets is DEpreciated on a corporate tax return,
based on the established depreciation rates for various assets, according
to
GAAP (Generally Accepted Accounting Principles)

Yes, I know that.

Now show me what that has to do with capital gains taxes.

Capital gains tax is owed when an asset is sold for more than its purchase
price. That's APpreciation.

--
Regards,
Doug Miller (alphageek at milmac dot com)

It's time to throw all their damned tea in the harbor again.