How do I enter the capital cost adjustment of a depreciable asset?The half-year rule applies in the year of acquisition and is attributable to net acquisitions made in the year. Adjustments made to the capital cost in the year of acquisition may be entered with the keyword Adjust-Curr , in the CCA-Class group. GST and PST rebates received in the year of acquisition are examples of such adjustments and they are entered with the keyword Adjust-Curr . The half-year rule will be applied on the cost of additions, net of adjustments acquired in the year, in excess of net proceeds of disposition (or capital cost if less) in that year. Adjustments made in a year subsequent to the year of acquisition are not subject to the half-year rule. You may enter these adjustments with the keyword Adjust-UCC . GST and PST rebates received in a year subsequent or ITC claimed in a prior year are examples of adjustments that you would enter with the keyword Adjust-UCC . These adjustments would not be subject to the half-year rule. October 21, 1999 |
