Adding depreciable propertyAt first, please refer to Chapter 4 of the T4002 form, found at the following link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
Also, to determine under which class the property can be classified, please visit the following link:
To enter the expenses of depreciable property, use the following procedure:
1. On the "Left side menu on the Interview tab" on your left, in the company that you created, select the "CCA" subsection and on the screen to your right, choose the class applicable to the property that you have acquired;
2. On the page pertaining to the class of the property, identify the property at the line "Description of the asset" and enter the date of acquisition;
3. For the line "To whom the CCA should be allocated", choose the option that suits you, from the drop-down menu to your right, usually "Business level (full amounts - 100%)";
4. For the line "Description and amount of capital additions", enter the purchase cost of the property or the market value of the property you are using for the company;
5. For the line "Application of half-year rule to current year additions", choose "Yes".
6. However, if you wish to limit your deduction for the Capital cost allowance (CCA) of this property, go to line "Limit to the CCA or the CECA of this class" and enter the amount of depreciation you wish to claim.
The amount of CCA will be carried over by the program on line 9936 of the T2125 and, for Quebec residents, to line 240 of the TP-80.
In addition, the program will carry over the calculation of the depreciation as well as the acquisition of property to page 5 of the T2125 and, for Quebec residents, the Capital Cost Allowance will be carried over to Part 5 of page 3 of the TP-80.
ID: 20191024133658NIX.xml
Webpage: KPA320-20191024133658NI.htm