When an asset becomes worthless, it is likely that a capital loss will arise at some point but, while capital gains normally arise when an asset is disposed of, the date a capital loss accrues may be more controllable by the taxpayer and, depending on the nature of the asset, more options may be available for using the loss.

Tangible assets

In the case of tangible assets such as buildings, paintings or antiques, the most likely reason for the asset becoming worthless is its loss or destruction.