Business Income - CCA Flashcards
1
Q
CCA calculation steps
A
- accounting gains are deducted, accounting deprecation and losses are added back, then CCA is calculated and recapture/terminal loss is calclauted if there is a sale
2
Q
CCA
A
- CCA is discretionary – meaning you can claim $0 up to the max amount
- CCA cannot be claimed until the asset is made for use
3
Q
Terminal loss
A
- arises when the last asset in the pool is disposed of and there is still a positive balance in the pool
4
Q
Recapture
A
- arises when an asset(s) has been disposed of resulting in a negative balance in the pool
5
Q
CCA calculation
A
UCC balance at the beginning of the year
+ cost of acquisitions during the year
- disposals during the year (lesser of cost and POD)
+ Accelerated investment incentive (AII) (if additions are greater than disposals = 50% of net amount)
= Base for CCA
- CCA claimed in the year
- AII
= UCC balance at the end of the year
6
Q
Class 1
A
- buildings = 4%
- non residential buildings = 6%
- manufacturing building = 10%
7
Q
Class 8
A
- furniture fixtures and equipment - 20%
8
Q
Class 10
A
- passenger vehicles up at $30k = 30%
9
Q
Class 10.1
A
- separate class for each asset (vehicle)
- passenger vehicles over $30k = 30%
10
Q
Class 12
A
- tolls under $500 and application software = 100%
11
Q
Class 14.1
A
- intangibles, incorporation costs greater than $3000 = 5%
12
Q
Class 50
A
- computer systems/hardware = 55%
13
Q
Class 53
A
- manufacturing and processing equipment
14
Q
Class 13
A
- leasehold improvements
- rate = Cost / lesser of… 1) 5 years (SL) or 2) lease term + 1st renewal
15
Q
Class 14
A
- limited life intangibles = CCA rate is the SL deprecation over legal life
