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Hi sir, hope you doing good.
on the damaged assets whose insurance proceed were fully used in the repair of the assets, isn’t it worth mention to consider the indexation rate in making election on deferral of the gains? that is on assumption that the damage as well as the insurance proceed happened before December 17. Although it is hugely important in terms of cash flow to defer the gain,there could be some saving in immediate changeability as the result of the indexation however small it maybe as the deferral will set low base cost for future taxation. or could this indexation rate be some fixed rate over all time ranges to December 2017?thanks
Oh ok i got it.
the deferral or rather the rolled over relief is computed at the time the proceed is received which effectively have taken into account the indexation allowance of the time. so we are simply making election over same figure of gain. well, like we do for corporate relief if the CT rate remain the same and have not wasted qualifying charitable donation for AP,then we will be looking at cash flow benefit therefore defer the gain.lots of rules yet simple and confusing. memory exercise at it’s best. thanks for your detailed lectures.
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