Question

Explain how Gains and on disposal of assets losses are calculated and give numerical examples for taxable gains and non-taxable gains ?

Answer 1

If the price of any particular asset or commodity minus all the depreciation / expenses/impairment loss etc will become the carrying amount of that asset. Then this carrying amount is to be substracted from the selling price , if the carrying amount is less than selling price its a loss and if carrying amount is more than selling price it is profit.

The term gain means profit earned from buying a thing at an x rate and selling it at a Y rate , which is higher than X

It is called taxable gain  

For instance, if you bought a piece of land for $500,000 and sold it for $800,000, you would need to report total capital gains of $300,000 for the said transaction

Non taxable gain means a gain or income which is exempted from the tax liability

For instance - A single mother gets child care reimbursement amounting to $5000 , this gain is not taxable and is considered to be non taxable gain