Table A-1. 3-, 5-, 7-, 10-, 15-, and 20-Year Property Half-Year Convention Depreciation rate for recovery period Year 3-year 5-year 7-year 10-year 15-year 20-year 33.33% 44.45 5.00% 9.50 3.750% 7.219 20.00% 14.29% 10.00% 18.00 32.00 24.49 14.40 8.55 6.677 14.81 7.41 19.20 11.52 11.52 17.49 12.49 11.52 9.22 7.70 6.177 8.93 6.93 5.713 6. 5.76 8.92 7.37 6.23 5.285 6.55 6.55 8.93 5.90 5.90 4.888 4.522 4.46 6.56 5.91 4.462 10 6.55 5.90 4.461 3.28 5.91 5.90 11 4.462 12 4.461 4.462 13 5.91 5.90 4.461 4.462 14 15 5.91 16 2.95 4.461 17 4.462 4.461 18 19 4.462 20 4.461 21 2.231 Table: MACRS Schedule by IRS 12345

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.