Form T2 Schedule 8 "Capital Cost Allowance (Cca) (2018 and Later Tax Years)" - Canada

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Download Form T2 Schedule 8 "Capital Cost Allowance (Cca) (2018 and Later Tax Years)" - Canada

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Clear Data
Schedule 8
Capital Cost Allowance (CCA)
Code 1801
(2018 and later tax years)
Protected B
when completed
Tax year-end
Corporation's name
Business number
Year
Month
Day
For more information, see the section called "Capital Cost Allowance" in the T2 Corporation Income Tax Guide.
Is the corporation electing under Regulation 1101(5q)?
101
Yes
No
1
2
3
4
5
6
7
8
9
Class
Cost of acquisitions during
Cost of acquisitions from
Adjustments and transfers (show
Amount from column 5
Amount from
Proceeds of
UCC
Undepreciated capital
number
cost (UCC) at the
the year (new property must
column 3 that are accelerated
amounts that will reduce the
that is assistance
column 5 that is
dispositions
(column 2 plus
be available for use)
investment incentive property
undepreciated capital cost in
received or receivable
repaid during the
column 3 plus or
beginning of the year
See
note 1
(AIIP)
brackets)
during the year for a
year for a property,
See
note 7
minus column 5
See
note 2
property, subsequent to
subsequent to its
minus column 8)
See
note 3
See
note 4
its disposition
disposition
See
note 8
See
note 5
See
note 6
200
201
203
225
221
222
205
207
10
11
12
13
14
15
16
17
18
Proceeds of
Net capital cost
UCC adjustment for
UCC adjustment for non-AIIP
CCA rate %
Recapture of CCA
Terminal loss
CCA
UCC at the end of the year
disposition available
additions of AIIP
AIIP acquired during
acquired during the year
(for declining balance
(column 9 minus column 17)
to reduce the UCC of
acquired during the
the year (column 11
(0.5 multiplied by the result of
See
note 11
See
note 12
See
note 13
method, the result of column
AIIP
year (column 4 minus
multiplied by the
column 3 minus column 4
9 plus column 12 minus
(column 8 plus
column 10)
relevant factor)
minus column 6 plus column 7
column 13, multiplied by
column 6 minus
(if negative, enter "0")
minus column 8)
column 14 or a lower amount)
column 3 plus
See
note 9
(if negative, enter "0")
column 4 minus
See
note 14
column 7)
See
note 10
(if negative, enter "0")
224
212
213
215
217
220
Enter the total of column 15 on line 107 of Schedule 1.
Totals
Enter the total of column 16 on line 404 of Schedule 1.
Enter the total of column 17 on line 403 of Schedule 1.
T2 SCH 8 (19)
( Ce formulaire est disponible en français. )
Page 1 of 2
Clear Data
Schedule 8
Capital Cost Allowance (CCA)
Code 1801
(2018 and later tax years)
Protected B
when completed
Tax year-end
Corporation's name
Business number
Year
Month
Day
For more information, see the section called "Capital Cost Allowance" in the T2 Corporation Income Tax Guide.
Is the corporation electing under Regulation 1101(5q)?
101
Yes
No
1
2
3
4
5
6
7
8
9
Class
Cost of acquisitions during
Cost of acquisitions from
Adjustments and transfers (show
Amount from column 5
Amount from
Proceeds of
UCC
Undepreciated capital
number
cost (UCC) at the
the year (new property must
column 3 that are accelerated
amounts that will reduce the
that is assistance
column 5 that is
dispositions
(column 2 plus
be available for use)
investment incentive property
undepreciated capital cost in
received or receivable
repaid during the
column 3 plus or
beginning of the year
See
note 1
(AIIP)
brackets)
during the year for a
year for a property,
See
note 7
minus column 5
See
note 2
property, subsequent to
subsequent to its
minus column 8)
See
note 3
See
note 4
its disposition
disposition
See
note 8
See
note 5
See
note 6
200
201
203
225
221
222
205
207
10
11
12
13
14
15
16
17
18
Proceeds of
Net capital cost
UCC adjustment for
UCC adjustment for non-AIIP
CCA rate %
Recapture of CCA
Terminal loss
CCA
UCC at the end of the year
disposition available
additions of AIIP
AIIP acquired during
acquired during the year
(for declining balance
(column 9 minus column 17)
to reduce the UCC of
acquired during the
the year (column 11
(0.5 multiplied by the result of
See
note 11
See
note 12
See
note 13
method, the result of column
AIIP
year (column 4 minus
multiplied by the
column 3 minus column 4
9 plus column 12 minus
(column 8 plus
column 10)
relevant factor)
minus column 6 plus column 7
column 13, multiplied by
column 6 minus
(if negative, enter "0")
minus column 8)
column 14 or a lower amount)
column 3 plus
See
note 9
(if negative, enter "0")
column 4 minus
See
note 14
column 7)
See
note 10
(if negative, enter "0")
224
212
213
215
217
220
Enter the total of column 15 on line 107 of Schedule 1.
Totals
Enter the total of column 16 on line 404 of Schedule 1.
Enter the total of column 17 on line 403 of Schedule 1.
T2 SCH 8 (19)
( Ce formulaire est disponible en français. )
Page 1 of 2
Clear Data
Note 1.
If a class number has not been provided in Schedule II of the Income Tax Regulations for a particular class of property, use the subsection provided in Regulation 1101.
Note 2.
Include any property acquired in previous years that has now become available for use. This property would have been previously excluded from column 3. List separately any acquisitions of property in the class that are not subject to
the 50% rule. See Income Tax Folio S3-F4-C1, General Discussion of Capital Cost Allowance, for exceptions to the 50% rule.
Note 3.
An accelerated investment incentive property (AIIP) is a property (other than property included in Class 54 or 55) that you acquired after November 20, 2018 and became available for use before 2028.
See the T2 Corporation Income Tax Guide for more information. Classes 54 and 55 include property that is a zero-emission vehicle you acquired after March 18, 2019 and became available for use before 2028.
Note 4.
Enter in column 5, "Adjustments and transfers", amounts that increase or reduce the undepreciated capital cost (column 9). Items that increase the undepreciated capital cost include amounts transferred under section 85, or
transferred on amalgamation or winding-up of a subsidiary. Items that reduce the undepreciated capital cost (show amounts that reduce the undepreciated capital cost in brackets) include government assistance received or entitled to
be received in the year, or a reduction of capital cost after the application of section 80. See the T2 Corporation Income Tax Guide for other examples of adjustments and transfers to include in column 5.
Note 5.
Include all amounts of assistance you received (or were entitled to receive) after the disposition of a depreciable property that would have decreased the capital cost of the property by virtue of paragraph 13(7.1)(f) if received before the
disposition.
Note 6.
Include all amounts you have repaid during the year with respect to any legally required repayment, made after the disposition of a corresponding property, of:
- assistance that would have otherwise increased the capital cost of the property under paragraph 13(7.1)(d); and
- an inducement, assistance or any other amount contemplated in paragraph 12(1)(x) received, that otherwise would have increased the capital cost of the property under paragraph 13(7.4)(b).
Also include the UCC of each property of a prescribed class acquired in the course of a corporate reorganization described under paragraph 55(3)(b) of the Act (also known as "butterfly reorganization") or in a non-arm's length
transaction (other than by virtue of a right referred to in paragraph 251(5)(b) of the Act) if the property was a depreciable property acquired by the transferor less than 364 days before the end of your tax year.
Note 7.
For each property disposed of during the year, deduct from the proceeds of disposition any outlays and expenses to the extent that they were made or incurred for the purpose of making the disposition(s). The amount reported in
respect of the property cannot exceed the property's capital cost, unless that property is a timber resource property as defined in subsection 13(21).
Note 8.
If the amount in column 5 reduces the undepreciated capital cost (i.e. it is shown in brackets), you must subtract it for the purposes of the calculation. Otherwise, add the amount in column 5 for the purposes of the calculation.
Note 9.
The relevant factors for AIIP of a class in Schedule II available for use before 2024 are:
- 2 1/3 for property in Classes 43.1 and 54;
- 1 1/2 for property in Class 55;
- 1 for property in Classes 43.2 and 53;
- 0 for property in Classes 12, 13, 14, and 15, as well as properties that are Canadian vessels included in paragraph 1100(1)(v) of the Regulations (see note 14 for additional information); and
- 0.5 for all other property that is AIIP.
Note 10. The UCC adjustment for non-AIIP acquired during the year (formerly known as the half-year rule or 50% rule) does not apply to certain property (including AIIP). For special rules and exceptions, see Income Tax Folio S3-F4-C1,
General Discussion of Capital Cost Allowance.
Note 11. Enter a rate only if you are using the declining balance method. For any other method (for example the straight-line method, where calculations are always based on the cost of acquisitions), enter N/A. Then enter the amount you are
claiming in column 17.
Note 12. If the amount in column 9 is negative, you have a recapture of CCA. If applicable, enter the negative amount from column 9 in column 15 as a positive. The recapture rules do not apply to passenger vehicles in Class 10.1.
Note 13. If no property is left in the class at the end of the tax year and there is still a positive amount in the column 9, you have a terminal loss. If applicable, enter the positive amount from column 9 in column 16. The terminal loss rules do not
apply to:
- passenger vehicles in Class 10.1;
- property in Class 14.1, unless you have ceased carrying on the business to which it relates; or
- limited-period franchises, concessions, or licences in Class 14 if, at the time of acquisition, the property was a former property of the transferor or any similar property attributable to the same fixed place of business, and you had
jointly elected with the transferor to have the replacement property rules apply.
Note 14. If the tax year is shorter than 365 days, prorate the CCA claim. Some classes of property do not have to be prorated. See the T2 Corporation Income Tax Guide for more information.
For property in class 10.1 disposed of during the year, deduct a maximum of 50% of the regular CCA deduction if you owned the property at the beginning of the tax year.
For AIIP listed below, the maximum first year allowance you can claim is determined as follows:
- Class 13: the lesser of 150% of the amount calculated in Schedule III of the Regulations and the UCC at the end of the tax year (before any CCA deduction).
- Class 14: the lesser of 150% of the allocation for the year of the capital cost of the property apportioned over the remaining life of the property (at the time the cost was incurred) and the UCC at the end of the tax year (before any
CCA deduction).
- Class 15: the lesser of 150% of an amount computed on the basis of a rate per cord, board foot or cubic metre cut in the tax year and the UCC at the end of the tax year (before any CCA deduction).
- Canadian vessels described under paragraph 1100(1)(v) of the Regulations: the lesser of 50% of the capital cost of the property and the UCC at the end of the tax year (before any CCA deduction).
- Class 41.2: use a 25% CCA rate. The additional allowance under paragraph 1100(1)(y.2)(for single mine properties) and 1100(1)(ya.2)(for multiple mine properties) of the Regulations is not eligible for the accelerated investment
incentive. The additional allowance in respect of natural gas liquefaction under paragraph 1100(1)(yb) of the Regulations is eligible for the accelerated investment incentive.
- Property (other than a timber resource property) that is a timber limit or a right to cut timber from a limit: 150% of the amount determined by first subtracting the total of the residual value of the timber limit and all amounts you
expended for the 1949 or later tax years for surveys, cruises or preparation of prints, maps or plans for the purpose of obtaining a licence or right to cut timber from the capital cost of the limit or right, and then dividing the result by
the quantity of timber in the limit or the quantity of timber you have the right to cut.
- Industrial mineral mine or a right to remove industrial minerals from an industrial mineral mine: 150% of the amount determined by first subtracting the residual value, if any, of the mine or right from the capital cost of the mine or right,
and then dividing the result by the number of units of commercially mineable material estimated to be in the mine when the mine or right was acquired (alternatively, if you have acquired a right to remove only a specified number of
units, that number of units that you acquired a right to remove).
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