Adding depreciable property
At 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:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes-depreciable-property.html
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
