Example – Calculation of capital cost allowance on form T2125

Example

Area A – Calculation of capital cost allowance (CCA) claim
1 – Class number 2 – UCC at the start of the year

3 – Cost of additions in the year (see Areas B and C)

4 – Cost of additions from column 3 which are AIIP or ZEVs (new property must be available for use in the year) 5 – Proceeds of dispositions in the year (see Areas D and E) 6 – UCC after additions and dispositions (col. 2 plus col. 3 minus col. 5)Footnote 1 7 – Proceeds of dispositions available to reduce additions of AIIP and ZEV (col. 5 minus col. 3 plus col. 4). If negative, enter "0" 8 – UCC adjustment for current-year additions of AIIP and ZEV (col. 4 minus col. 7) multiplied by the relevant factor. If negative, enter "0" 9 – Adjustment for current-year additions subject to the half-year rule.
1/2 multiplied by (col. 3 minus col. 4 minus col. 5). If negative, enter "0"
10 – Base amount for CCA (col. 6 plus col. 8 minus col. 9) 11 – CCA rate  (%) 12 – CCA for the year (col. 10 multiplied by col. 11 or a lower amount 13 – UCC at the end of the year (col. 6 minus col. 12)
10 $1,000 $16,000 $0 $1,000 $16,000 $0 $0 $7,500 $8,500 30 $2,550 $13,450
8 $5,000 $0 $0  $0 $5,000 $0 $0 $0 $5,000 20 $1,000 $4,000

Cathy enters her total CCA claim for the year on line 9936, "Capital cost allowance (CCA)" in Part 4 of form T2125.

Note
Her total CCA claim for the year is limited to the total of all amounts in column 12, $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 "Special situations" in Chapter 4 of guide T4002.

Area B – Equipment additions in the year
1 – Class number 2 – Property description 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.

Area D – Equipment dispositions in the year
1 – Class number 2 – Property description 3 – Proceeds of disposition (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 $1,000.

Note
If you disposed of property from your business in the year, see Chapter 3 of guide T4002 for information about your proceeds of disposition.

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