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
