Recapture of capital cost allowance and terminal
loss
In the case of depreciable property, when the proceeds of
disposition exceed the undepreciated
capital cost, there is usually a recapture of capital cost
allowance. The recapture must be included in your income on the
tax return.
When the proceeds of disposition are less
than the undepreciated capital cost, the result is
a terminal loss, which can be deducted on
your tax return.
NOTE: The rules for recapture and terminal
loss do not apply to passenger vehicles
in class 10.1 (cost more than $30.000).
For more information, please consult the interpretation
bulletin IT-478 - "Capital Cost Allowance -
Recapture and Terminal Loss".
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance.html
ID: 20211004204253DE.xml
Webpage: KPA320-20211004204253DE.htm
