Part A - Classes 8 and 10

Column 2 - Undepreciated capital cost at the start of the year

If you claimed CCA in any previous year, record in this column the undepreciated capital cost (UCC) of the property at the end of last year. For instance, if you completed Part A of Form T777 in 2017, you would have recorded this amount in column 10. However, if you received a GST/HST rebate for a vehicle or musical instrument in 2018, you have to reduce your opening UCC by the amount of the rebate.

Column 3 - Cost of additions in the year

If you acquired depreciable property in 2018, enter the total capital cost of the property on the appropriate line.

If you owned property for personal use and then started using it for employment in 2018, there is a change in use. In most cases when this happens, the amount you will enter in column 3 is the fair market value of the property.

For example, John bought a car in 2016 for $19,000. In 2018, he started using it for employment. By checking car dealerships and the newspapers, John determines its fair market value is $11,000. Therefore, he enters $11,000 in column 3.

To determine what class your passenger vehicle belongs to, use the price of the car before you add GST and any PST, or HST. However, once you determine that your vehicle belongs to Class 10, add the GST and PST, or HST that you paid to the vehicle's capital cost.

For example, in 2018, you bought a passenger vehicle for $28,000 plus HST of $3,640. Your vehicle belongs in Class 10 even though its capital cost is $31,640 ($28,000 + $3,640), since your cost before the HST was $28,000. You would enter $31,640 in column 3 for Class 10 property.

For information on Class 10.1 property, see the section called Part B - Class 10.1 property.

Column 4 – Cost of additions which are accelerated investment incentive properties (AIIP) under proposed legislation

Enter in column 4 the cost of additions that are accelerated investment incentive property (AIIP). These properties must be acquired and available for use after November 20, 2018. This number is a part of the total cost of additions in column 3 and cannot be higher than the number in column 3.
If no AIIP is acquired after November 20, 2018, enter zero in this column.

Column 5 - Proceeds of disposition in the year

For depreciable property you disposed of in 2018, enter the lesser of:

  • the proceeds of disposition of the property, minus the related outlays and expenses
  • the capital cost of the property
Column 6 - Undepreciated capital cost after additions and dispositions

Enter the amount you get after you add column 2 to column 3 and subtract column 5.

You cannot claim CCA when the amount in column 6 is one of the following:

  • negative (recapture)
  • positive and you do not have any property in the class at the end of the year (terminal loss)

Recapture of capital cost allowance - If the amount in column 6 is negative, you have a recapture of CCA. Include the amount as income on line 104 of your return for 2018.

Terminal loss - If the amount in column 6 is positive and you no longer own any property in that class, you have a terminal loss. You cannot deduct the terminal loss from income.

Column 7 – Proceeds of dispositions available to reduce additions of AIIP

If the UCC of a class increases in a year by an investment in both AIIP and non-AIIP, and an amount (e.g., a disposition) reduces the UCC of the class, you must first reduce the cost of non AIIP additions before reducing the cost of AIIP additions.

To determine which portion of your proceeds of dispositions, if any, will reduce the cost of your AIIP additions, take proceeds of disposition in column 5 minus the cost of additions in the year in column 3 plus the cost of additions for AIIP properties in column 4. If the result is negative enter “0.”

If no AIIP is acquired after November 20, 2018, you do not need to use this column.

Column 8 – Undepreciated capital cost (UCC) adjustment for current-year additions of AIIP

This column calculates the enhanced UCC amount used to determine the additional CCA for AIIP.

For this column, reduce the cost of AIIP additions in column 4 by proceeds of disposition available to reduce the AIIP additions as calculated in column 7. Multiply the result by 0.5 for AIIP. This factor will change for properties that become available for use after 2023 and the incentive is completely phased out for properties available for use after 2027.

If no AIIP is acquired after November 20, 2018, enter zero in this column.

Column 9 - Adjustments for current-year additions

You can only claim CCA on 50% of your net additions (additions minus dispositions) of Class 8 or Class 10 properties in 2018. This is known as the 50% rule. The 50% rule does not apply to AIIP. Calculate the net first year additions that are subject to the 50% rule by entering 50% of the amount you get when you subtract column 5 and column 4 from column 3. If the result is negative, enter zero in column 9.

Column 10 - Base amount for capital cost allowance

Enter the amount you get when you subtract column 9 from column 6 plus column 8. Base your CCA claim, if any, on the amount in this column. You can only claim CCA on the balance remaining in column 10 when the amount is positive and you still have property in the class at the end of the year.

Column 12 - Capital cost allowance for the year

You can only claim CCA if you were still using the property for employment at the end of 2018. If you started using a property for employment part way through the year, you can claim CCA on the property for the full year. You do not have to limit your CCA claim to the part of the year you used the property for employment. If you stopped using the property for employment during the year, you cannot claim any CCA on the property for the year.

Enter the CCA you want to claim for 2018. The most you can claim for a Class 10 property is 30% of the amount in column 10. The most you can claim for a Class 8 property is 20% of the amount in column 10.

Column 13 - Undepreciated capital cost at the end of the year

Enter the amount you get when you subtract column 12 from column 6. This is your undepreciated capital cost at the end of 2018.

Completing your tax return

Calculate your CCA claim using the back of Form T777, Statement of Employment Expenses and enter the amount on the applicable line on the front of the form.

Enter the amount you can deduct from the Total expenses line (9368) of Form T777 on line 229 of your return.

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