Example - Calculation of Capital Cost Allowance on Form T2125

Example

Area A - Calculation of capital cost allowance (CCA) claim
1 - Class Number 2 - Undepreciated capital cost (UCC) at the start of the year

3 - Cost of additions in the year (see Area B and C below)

4 - Proceeds of dispositions in the year (see Area D and E below)

5 - UCC after additions and dispositions (col. 2 plus col. 3 minus col. 4)Footnote 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

Cathy enters her total CCA claim for the year on line 9936 - Capital cost allowance in Part 4 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.

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 $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.

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