{"id":203726,"date":"2021-08-16T10:03:36","date_gmt":"2021-08-16T17:03:36","guid":{"rendered":"https:\/\/www.nationalfunding.com\/blog\/?p=203726"},"modified":"2021-08-16T10:03:36","modified_gmt":"2021-08-16T17:03:36","slug":"capital-gain-vs-capital-loss","status":"publish","type":"post","link":"https:\/\/www.nationalfunding.com\/blog\/capital-gain-vs-capital-loss\/","title":{"rendered":"Capital Gain vs. Capital Loss"},"content":{"rendered":"<p>If your business plans to transition to a full-time virtual working environment, you may no longer need many of your business&#8217;s physical assets. But, should you sell them?<\/p>\n<p>Selling real estate, vehicles or other business equipment will have tax implications for your business. Understanding capital gain vs. capital loss will reveal how any sales might affect your tax liability.<\/p>\n<p>So, before you <a href=\"https:\/\/www.nationalfunding.com\/blog\/sale-of-business-assets\/\" target=\"_blank\" rel=\"noopener noreferrer\">sell your business assets<\/a>, let&#8217;s break down the differences between capital gain vs. capital loss.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" title=\"Taking his jewelry design business online\" src=\"https:\/\/blog.nationalfunding.com\/wp-content\/uploads\/2021\/08\/taking-his-jewelry-desig.jpg\" alt=\"Taking his jewelry design business online\" width=\"511\" height=\"355\" \/><\/p>\n<h2>Capital Gain<\/h2>\n<p>If you sell a business asset for a higher price than its current market value, you&#8217;ll incur a capital gain. For example, if your point-of-sale system is currently worth $700, but a buyer is willing to pay $1,000, the difference of $300 is taxed as a capital gain on the sale of business assets.<\/p>\n<p>If you owned the asset for less than one year, your profit will be taxed at your normal <a href=\"https:\/\/www.nationalfunding.com\/blog\/the-small-business-tax-rate-2021-explained\/\" target=\"_blank\" rel=\"noopener noreferrer\">tax rate<\/a>. If you owned it for more than one year, your capital gain on the sale of business assets will be taxed at the long-term capital gains rate \u2014 0%, 15% or 20% of your profit, depending on your tax bracket.<\/p>\n<h2>Capital Loss<\/h2>\n<p>A capital loss would result if you sold an asset for a lower price than your investment in it. If you bought an office building for $300,000 and sold it for $250,000, you&#8217;d have a capital loss of $50,000.<\/p>\n<p>That loss would reduce your business&#8217;s taxable income, but you&#8217;d also lose $50,000. If your employees plan to work from home instead of the office, however, the savings you&#8217;ll incur by no longer owning the real estate may make the loss worth it.<\/p>\n<h2>Savvy Decision-Making<\/h2>\n<p>Before selling your business assets, consider capital gain vs. capital loss. That way, you can enter into a sales agreement with a full understanding of how it will affect your bottom line.<\/p>\n<p><em>Did you take a capital loss and now need supplemental funds? Check out <a href=\"https:\/\/www.nationalfunding.com\/solutions\/\" target=\"_blank\" rel=\"noopener noreferrer\">National Funding&#8217;s small business funding solutions<\/a> or fill out our <a href=\"https:\/\/www.nationalfunding.com\/application\/apply-now\/\" target=\"_blank\" rel=\"noopener noreferrer\">contact form<\/a> to contact a representative.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Understanding capital gain vs. capital loss is important for business owners who are considering selling business assets.<\/p>\n","protected":false},"author":12,"featured_media":203722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[2882,2885,87,115],"class_list":["post-203726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-health","category-taxes-regulations","tag-capital-gain","tag-capital-loss","tag-section-179-tax-deductions","tag-tax-deductions-for-small-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Capital Gain vs. Capital Loss<\/title>\n<meta name=\"description\" content=\"Understanding capital gain vs. capital loss is important for business owners who are considering selling business assets.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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