Business CECA (cumulative eligible capital amount)An eligible capital expenditure is a property that does not physically exist but gives you a lasting economic benefit. Some examples are goodwill, franchises, concessions, or licences for an unlimited period.
For more information, you can consult the T4002 Guide, particularly Chapter 5. Please use the following CRA link:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
To claim an annual allowance, follow these steps:
1- On the "Left side menu on the Interview tab", select "Self-employment income".
2- When you have completed the "Business ID" as well as the "Income, expenses" pages and any other appropriate pages, select the "CCA" sub-section and on the screen on the right, choose the "Class 14.1" that applies to your situation:
a. Class 14.1 - 7% (Eligible capital property before 2017- other) - Enter cumulative eligible capital balances of separate businesses, other than farms or fishing businesses acquired before 2017
b. Class 14.1 - 7% (Eligible capital property before 2017- farming or fishing) - Enter cumulative eligible capital balances of separate farms or fishing businesses acquired before 2017
c. Class 14.1 - 5% (after 2016) - Enter cumulative eligible capital balances of separate farms or fishing businesses acquired after 2016.
3- Fill the page that is displayed.4- If you do not wish to claim the maximum allowable amount, you can limit it by choosing the line "Limit to the CCA or the CECA of this class" and in the field to the right enter the amount requested.
The program will report the amount on line 9935 of Form T2125.
ID: 20191024155829NIX.xml
Webpage: KPA320-20191024155829NI.htm