Business CCA half-year rule
The program will apply the half-year rule in the year you
acquire depreciable assets or additions to the property.
For more information, consult the following links:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance.html
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4002.html
https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-3-property-investments-savings-plans/series-3-property-investments-savings-plans-folio-4-capital-cost-allowance/income-tax-folio-s3-f4-c1-general-discussion-capital-cost-allowance.html
To claim the capital cost allowance, follow these steps:
1 - On the "Left side menu on the Interview
tab" select "Self-employment income";
2 - You have completed the "Business
identification" pages as well as on the "Income
and Expenses" pages and others, if necessary.
3 - Select the sub-section "CCA" and on the
screen to the right, choose the category that applies to your
situation.
4 - On the new page that appears, record the information on the
line "Description and amount of capital additions"
and in the field to the right enter the amount.
NOTES:
If the asset was bought before November 20,
2018 or it is from one of classes 53,
43.1 or 43.2, enter the description and the amount in box
"Description and amount of capital additions (other than
AIPP)".
If the asset was bought after November 20,
2018 or it is not from one of
classes 53, 43.1 or 43.2, enter the
description and the amount in box "Description and amount
of capital additions of AIPP".
5 - If you do not wish to claim the maximum allowable amount,
you can limit the CCA by choosing the line "Limit to the
CCA or the CECA of this class" and in the field to the
right enter the desired amount.
6 - If you do not want to apply the half-year rule (exceptions),
select "No" online "Application of
half-year rule to current year additions".
The cost of acquisition will be reported in column 3 of
Area A of Form T2125.
ID: 20191025160259NI.xml
Webpage: KPA320-20191025160259NI.htm
