Example - Calculation of Capital Cost Allowance on Form T2125
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Example - Calculation of Capital Cost Allowance on Form T2125
Example
| 1 - Class Number | 2 - Undepreciated capital cost (UCC) at the start of the year |
3 - Cost of additions in the year (see Part 12 and 13 below) |
4 - Proceeds of dispositions in the year (see Part 14 and 15 below) |
5 - UCC after additions and dispositions (col. 2 plus col. 3 minus col. 4) 1 |
6 - Adjustment for current year additions (1/2 × (col.3 minus col.4)) - If negative, enter "0" | 7 - Base amount for CCA (col.5 minus col.6) | 8 - CCA Rate (%) | 9 - CCA for the year (col. 7 × col. 8 or an adjusted amount | 10 - UCC at the end of the year (col. 5 minus col. 9) |
|---|---|---|---|---|---|---|---|---|---|
| 10 | $1,000 | $16,000 | $1,000 | $16,000 | $7,500 | $8,500 | 30 | $2,550 | $13,450 |
| 8 | $5,000 | $0 | $0 | $5,000 | $0 | $5,000 | 20 | $1,000 | $4,000 |
1 If you have a negative amount in column 5, add it to income as a recapture in Part 3 at line 8230 "Other income". If no property is left in the class and there is a positive amount in the column, deduct the amount from income as a terminal loss on line 9270 - "Other expenses" in Part 5. Recapture and terminal loss do not apply to class 10.1 property.
Cathy enters her total CCA claim for the year on line 9936 - Capital cost allowance in Part 5 of form T2125.
Note
Her total CCA claim for the year is limited to the total of all amounts in column 9, $3,550, minus any personal part and any CCA for business-use-of-home expenses. For information on the CCA for "Calculation of business-use-of-home expenses," see Guide T4002 Chapter 4.
| 1 - Class Number | 2 - Property details | 3 - Total Cost | 4 - Personal part (if applicable) | 5 - Business part (column 3 minus column 4) |
|---|---|---|---|---|
| 10 | Passenger Vehicle | $16,000 | Varies | $16,000 |
Cathy's business part of her total additions in the year, line 9925 of form T2125, is $16,000.
| 1 - Class Number | 2 - Property details | 3 - Proceeds of dispositions (should not be more than the capital cost) | 4 - Personal part (if applicable) | 5 - Business part (column 3 minus column 4) |
|---|---|---|---|---|
| 10 | Passenger Vehicle | $1,000 | $0 | $1,000 |
Cathy's business part of her total equipment dispositions in the year, line 9926 of form T2125, is $16,000.
Note
If you disposed of property from your business in the year, see guide T4002 Chapter 4 for information about your proceeds of disposition.
Forms and publications
- Guide T4002, Business and Professional Income
- Form T2125, Statement of Business or Professional Activities
- Folio S3-F4-C1, General Discussion of Capital Cost Allowance
- Date modified:
- 2017-01-03