CCA

Question 1

CCA of leasehold improvements

Answer 1

Lesser of:
CCA = (I) Leasehold/ # of 12 month periods cost from
beginning of fiscal period cost
incurred to termination of lease
(max 40 years + include1st
term renewal) – ITA1100 (1)(b)

(II) 1/5 of Capital Cost

Question 2

CCA of FRANCHISES, LICENSES

Answer 2

CCA is obtained by apportioning the cost of each such asset over the life of the property remaining at the time the cost was incurred
- CCA is determined separately for each item
- No half year rule
- Patents included in Class 44 (25%) unless
elected not to be included in Class 44, but
Class 14 instead

Question 3

CCA of Automobiles costing > 36,000

Answer 3

• Separate class; not pooled (Reg 1101 (1af))
• No Recapture or Terminal Loss (ITA 13(2))
• 1/2 year of CCA can be claimed in year of disposal, as well as in the year of acquisition
  -Class 10.1

Question 4

CCA of Class 14.1

Answer 4

▪ Goodwill (purchased)
▪ Franchises, licenses, and concessions with no legal limited life
▪ Trademarks
▪ Customer lists
▪ Incorporation costs (in excess of $3,000- the first $3,000 is deductible)