I want to know whether the amount of Fixed Assets written off is allowed as business loss under Income Tax Act ?? If it's allowed, then what is will be the depreciation on those assets as per Income Tax Act ??
P.S. The assets are destroyed, and can't be used.
Discussion on Tax Treatment of Fixed Assets Write-Offs as Business Losses Under Income Tax Act Remains Unresolved A forum participant inquired about the tax treatment of fixed assets written off, specifically if such write-offs are considered business losses under the Income Tax Act and how depreciation is handled. Responses varied, with one participant questioning if there was an insurance claim involved, while another provided detailed accounting procedures for writing off fixed assets, including scenarios of asset disposal and the resulting financial entries. A participant expressed that the amount written off should be considered an admissible expense. However, another pointed out that the core question of tax treatment as a business loss remained unanswered. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
