Depreciable Capital Property

Question 1

UCC is negative

Answer 1

if UCC before disposition - the lesser of capital cost and FMV is negative - there is recapture

Question 2

UCC is positive

Answer 2

If UCC before disposition minus the lesser of capital cost and FMV is position - there is terminal loss

Question 3

Recapture of UCC

Answer 3

is fully included in taxable income for the year

Question 4

Terminal loss

Answer 4

Fully reduces taxable income for the year