Schedule 8, Capital Cost Allowance (CCA)

Creation of class 14.1

When the corporation's taxation year starts on January 1, 2017, class 14.1 will automatically be created when the client file is rolled forward from the information contained in Schedule 10, Cumulative Eligible Capital Deduction and Schedule 10 WORKCHART, Cumulative Eligible Capital Deduction Workchart.

A separate class 14.1 will be created for each different business name entered in Schedule 10 WORKCHART. All copies of Schedule 10 WORKCHART not containing a business name will be grouped in a single copy for class 14.1.

Data rolled forward from Schedule 10 when the taxation year starts on January 1, 2017

Cumulative eligible capital (CEC) balance (positive or negative) in respect of the business on January 1, 2017 (Line G)

To calculate the deemed capital cost of property for this class, indicate the cumulative eligible capital (CEC) amount on January 1, 2017. When a client file is rolled forward, the program inputs the total of amounts M from the copies of Schedule 10 WORKCHART in which the business name is identical.

Deductions that reduced the CEC in respect of the business for taxation years ending before January 1, 2017 (Line I)

This amount is used to calculate the deemed capital cost of the property in the class. When a client file is rolled forward, this amount corresponds to the sum of the total amount in the CEC deduction from income (line 250) column of the Table of CEC deduction from income of previous years, located under Part 2 in Schedule 10, and the amount of the current year deduction entered on line 250 of Schedule 10.

Data calculated to manage the information relating to property acquired before January 1, 2017

Deemed total capital cost of property in the class under paragraph 13(38)(a) ITA (Line K)

This amount will be calculated based on the following formula:

(4/3 x [G + (3/2 x H) + I + J])

where

G is the CEC balance (positive or negative) in respect of the business on January 1, 2017

H is the amount that would need to be included in income pursuant to paragraph 14(1)(b) ITA, as that paragraph applied immediately before January 1, 2017, when the CEC balance is negative.

I is the total of the deductions that reduced the CEC in respect of the business for taxation years ending before January 1, 2017.

J is item D.1 of the CEC definition set out in paragraph 14(5) ITA, as that paragraph applied immediately before January 1, 2017, when the CEC balance is negative.

Amount deemed allowed as a deduction against the capital cost of property in the class under paragraph 13(38)(c) ITA for taxation years ending before January 1, 2017 (Line L)

The deemed CCA allowed is equal to the difference between the deemed total capital cost and the positive CEC balance at the time of the roll forward.

UCC balance in the class on January 1, 2017 (Line M)

The UCC balance is equal to the difference between the deemed total capital cost and the deemed CCA allowed. Any positive result obtained also corresponds to the UCC balance (opening) entered on line 201, if this amount is positive. In general, the UCC balance at the time the class is created will be equal to the CEC balance in respect of the business (line G).

CCA claimed with respect to this UCC balance in preceding taxation years (Line N)

This is the total amount of the capital cost allowance (CCA) and the additional deduction that has been deducted from the UCC balance in the class on January 1, 2017 (line M), for taxation years ending between January 1, 2017, and December 31, 2026. This amount will be calculated each year when the client file is rolled forward.

The amount updated to this line will vary according to the CCA claimed. When rolling forward a client file, the program will automatically add to the amount entered on the line in the initial client file, the lesser of:

1. the total of the CCA and the additional deduction calculated for the UCC balance on January 1, 2017, net of the CCA amount claimed with respect to this UCC balance in prior years; and
2. the CCA amount claimed on line 217 for the class.

When the CCA amount claimed on line 217 of the form is not nil and it is different from the maximum CCA that can be claimed by the corporation, verify if the amount updated is correct.

Additional deduction

For taxation years ending before 2027, an additional deduction corresponding to 2% of the UCC in the class on January 1, 2017, can be claimed with respect to property of a business that has been acquired before January 1, 2017. This additional deduction is however reduced from any amount that has been deducted in prior taxation years and three times the total of the amounts deducted from the UCC because of the amounts received to which subsection 13(39) ITA applies.

Furthermore, if the total of that additional deduction and the eligible CCA for the year is less than $500, the additional deduction may be increased to allow a total CCA of $500, without exceeding the UCC in the class on January 1, 2017 (net of CCA deductions for prior years that started after January 1, 2017), or to ensure that the CCA in respect of the class for the year to be more than the UCC balance (before the application of such deduction).

Transitional rules – Subsections 13(38) to 13(42) ITA

Subsections 13(38) to (42) ITA provide for the transitional rules that apply as a result of the repealing of the eligible capital property rules and the addition of CCA class 14.1.

Subsection 13(38) ITA provides for the rules that apply where an eligible capital expenditure in respect of a business has been incurred before January 1, 2017.

Subsection 13(39) ITA sets forth the rules that apply where certain property that was eligible capital property before January 1, 2017, is disposed of on or after January 1, 2017.

Subsection 13(40) ITA prevents the use of subsection 13(39) ITA to “step-up” the UCC in the new class by means of a non-arm’s length transfer of property that was eligible capital property before January 1, 2017.

Subsection 13(41) ITA sets forth that the terms “cumulative eligible capital,” “eligible capital expenditure,” “eligible capital property” and “exempt gains balance” have the same meaning as the version of the Act in effect immediately before 2017, for the application of subsections 13(38) to (40) and (42), paragraph 20(1)(hh.1), subsections 40(13) to (16) and paragraph 79(4)(b) ITA.

Subsection 13(42) ITA provides special rules put in place as a result of the repeal of the eligible capital property rules. These rules apply if a taxpayer owns property included in class 14.1 in respect of a business at the beginning of January 1, 2017.

Based on CRA requirements, when property acquired during the year is included in CCA class 43.1 or 43.2 on line 203, additional information is required with respect to each of these acquisitions. This information is used for statistical purposes only.

Therefore, a section has been added to the Capital Cost Allowance (CCA) Workchart (Jump Code: 8 WORKCHART), for these two CCA classes only. This section displays when an acquisition amount is entered on line 203 for property in class 43.1 or 43.2. It includes multi-lines areas that allow you to provide the information required for each of the property acquisitions included in one of these classes. Follow the instructions below to complete the section:

• Column 301, Type of asset code: Choose the most appropriate code from a list of 20 codes provided by the CRA. See the complete list of these codes and related definitions below.
• Column 302, Province where the asset is located: By default, the program determines the province where the corporation’s head office (corporation’s head office – provincial or territorial jurisdictions of Canada only) is located based on information indicated on line 016 of Form Identification (Jump Code: ID). Validate the province determined by the program and change it if applicable.
• Column 303, Percentage allocated to the asset: Indicate the percentage of each property acquisition with relation to the total amount of property acquisitions during the year (line 203) for the given class (43.1 or 43.2). The total of the percentages allocated to the property in a class must be equal to 100%.

Note that the CRA does not want to add these lines on its Schedule 8. This is why this information is not found on the paper copy of Schedule 8; it appears on screen only. However, this information is mandatory: it is included in the bar codes and is transmitted electronically.

Line 301 - Type of asset code and definition

There are three CCA classes for zero-emission equipment that become available for use before 2028:

• class 54 (CCA rate of 30%) for zero-emission motor vehicles and passenger vehicles, that would be included in class 10 or class 10.1;
• class 55 (CCA rate of 40%) for zero-emission vehicles, that would be included in class 16; and
• class 56 (CCA rate of 30%) for zero-emission equipment and vehicles, that are not included in CCA classes 54 and 55.

These three CCA classes benefit from a temporary enhanced first-year CCA rate of 100% applicable to eligible zero-emission automotive equipment and vehicles that are acquired after March 18, 2019, (after March 1, 2020, for CCA class 56) and that become available for use before 2024. The enhanced rate is reduced to 75% after 2023 and before 2026 and to 55% after 2025 and before 2028.

A “zero-emission vehicle” is:

• a motor vehicle as defined in the Income Tax Act;
• a fully electric or a plug-in hybrid vehicle, with a battery capacity of at least 15 kWh or fully powered by hydrogen;
• a new vehicle, i.e. it must not have been used, or acquired for use, for any purpose before it is acquired by the taxpayer;
• a vehicle in respect of which no assistance has been paid by the Government of Canada under the federal purchase incentive announced on March 19, 2019.

A “zero-emission passenger vehicle” is an automobile (as defined in the ITA) that is included in class 54.

For each zero-emission passenger vehicle included in class 54 that is available for use in the taxation year, a limit of $55,000 (plus the sales taxes applicable on this amount) is applied to the capital cost eligible for CCA. In addition, where the vehicle is disposed of to a person or partnership with which the taxpayer deals at arm’s length,

• if the disposition occurs before July 30, 2019, the actual proceeds of disposition are multiplied by the ratio corresponding to the capital cost of the vehicle divided by the actual cost of the vehicle;
• in other cases, the actual proceeds of disposition are multiplied by the ratio corresponding to the capital cost of the vehicle divided by the result of the following formula:

D + (E + F) – (G + H)

where

D is the cost to the taxpayer of the vehicle,

E is the amount determined under paragraph 13(7.1)(d) ITA in respect of the vehicle at the time of disposition,

F is the maximum amount determined for C in the UCC definition set out in subsection 13(21) ITA in respect of the vehicle,

G is the amount determined under paragraph 13(7.1)(f) ITA in respect of the vehicle at the time of disposition, and

H is the maximum amount determined for J in the UCC definition set out in subsection 13(21) ITA in respect of the vehicle.

When the Additions and Dispositions Workchart is used, the program calculates the eligible capital cost of a zero-emission passenger vehicle in the year of acquisition as well as the proceeds of disposition in the year of disposition when you complete the “Information relating to zero-emission vehicles” section. The field “Government assistance received or repaid” located in the “Disposition of a zero-emission passenger vehicle” subsection should be used to enter the result obtained according to the portion (E + F) – (G + H) of the formula described above to allow for the calculation of the proceeds of disposition when the disposition is made after July 29, 2019.

Property included in classes 54, 55 and 56 are not AIIP and the half-year rule does not apply to them. However, note that, for the purposes of the calculations in Schedule 8, the CRA considers property in these classes acquired in the taxation year to be AIIP.

Subsection 1103(2j) ITR provides for an election to not include in class 54 or 55 a vehicle that would otherwise be a zero-emission vehicle. This election means that such a vehicle would not be a zero-emission vehicle but would be included in its usual CCA class (class 10, 10.1 or 16). For CCA class 56, such election could also be made to include property in the class for which it would otherwise be eligible.

Accelerated investment incentive property (AIIP)

To qualify, these properties must be acquired and available for use after November 20, 2018. In addition, certain properties are excluded from the definition, in particular:

• property acquired on a rollover basis (section 85 ITA), or following an amalgamation (section 87 ITA) or the wind-up of a subsidiary (section 88 ITA);
• property previously owned or acquired by the taxpayer or by a person or partnership with which the taxpayer did not deal at arm’s length at any time when the property was owned or acquired by the person or partnership.

AIIP acquired in the tax year will not be subject to the “half-year rule” but will benefit from an increased CCA adjustment in the year of acquisition. Subsection 1100(2) ITR now incorporates several rules to calculate the first-year allowance according to the CCA class:

• The general rule that applies for all CCA classes subject to subsection 1100(2) ITR (except classes 12, 13, 14, 15, 43.1, 43.2 and 53) allows for an increase in the UCC balance before CCA equal to 50% of the net additions (these is no addition for property acquired and available for use after 2023 and before 2028).
• Specific rules that apply to classes 43.1, 43.2 and 53, benefit from a 100% CCA of the cost of acquisition for property acquired and available for use after November 20, 2018, and before 2024. A phase-out of the increased CCA is defined for each CCA class for property available for use after 2023 and before 2028.
• The half-year rule, which always apply to property that do not meet the definition of “accelerated investment incentive property” from subsection 1104(4) ITR as well as property acquired and available for use before November 21, 2018, and after 2027.

In addition, specific rules are provided for CCA classes 13 and 14 in paragraphs 1100(1)(b) and (c) ITR. Therefore, for AIIP in CCA classes 13 and 14, the CCA will be equal to 150% of the CCA that would normally be calculated in the year of acquisition of the property.

Calculation of line Maximum allowable CCA in the Federal column

For CCA classes other than 10.1, 13 and 14 or other than classes 24, 27, 29 and 34, the custom line 225, Cost of additions of AIIP included in the amount on line 203, allows you to enter the capital cost of qualified property. This line is used to calculate the amount on the line UCC adjustment for AIIP acquired during the year, according to the CCA class selected, and as a result, take into account the rules in respect of subsection 1100(2) ITR when calculating the amount on the line Maximum allowable CCA. When the corporation’s taxation year starts after November 20, 2018, the amount on this line is calculated and equals the amount on line 203, Additions (property subject to subsection 1100(2) ITR). Note that the calculation of the line UCC balance for CCA calculation has not been modified for CCA classes 24, 27, 29 and 34 as it is no longer possible to acquire property in these classes.

For a CCA class 10.1, the custom question Is the property an accelerated investment incentive property, as defined under subsection 1104(4) ITR? allows you to indicate if the property qualifies for the increased CCA. If the answer the question is “Yes,” the amount entered on the line Maximum allowable CCA will take into account the general rule for qualified property. When the corporation’s taxation year ends after November 20, 2018, and the acquisition date is after November 20, 2018, and is part of the taxation year, the answer to the custom question is set to “Yes.”

For CCA class 13, line 225, Cost of additions of AIIP included in the amount on line 203, allows you to enter the capital cost of qualified property. This line is used to calculate the amount added to the line Maximum allowable CCA taking into account clause 1100(1)(b)(i)(A) ITR. When the corporation’s taxation year starts after November 20, 2018, the amount on this line is calculated and equals the amount on line 203, Current-year additions, property subject to subparagraph 1100(1)(b)(i) ITR.

For CCA class 14, the custom question Is one of the properties an accelerated investment incentive property, as defined under subsection 1104(4) ITR? allows you to indicate if one of the properties qualifies for the increased CCA. When the answer to the question is “Yes,” and the date of acquisition is after November 20, 2018, the amount entered on line 225, Cost of additions of AIIP included in the amount on line 203, is calculated and equals the amount on line 203, Current-year additions. The latter is then used to calculate the amount on the line Maximum allowable CCA taking into account clause 1100(1)(c)(i)(A) ITR.

These calculations also apply to amounts in the Alberta column when the corporation has a permanent establishment in this province. Similarly, they also apply to the amounts in the Québec column, except for property in CCA classes 14.1, 44 and 50, acquired after December 3, 2018, that are properties qualified for the accelerated depreciation special rules in Québec.

Note: To comply with the filing requirements for a corporation tax return, line 211, 1/2 of net additions, will only be calculated when the corporation’s taxation year ends before November 21, 2018. Otherwise, the lines Proceeds of disposition available to reduce the UCC of AIIP, Net capital cost additions of AIIP acquired during the year, UCC adjustment for AIIP acquired during the year, and 224, UCC adjustment for non-AIIP acquired during the year will be calculated.

Property qualifying for accelerated depreciation special rules in Québec

In the Information Bulletin 2018-9, published on December 3, 2018, the Government of Québec announced the harmonization with the measures for the AIIP announced by the federal Government. In addition, it announced the increase to 100% of the depreciation for a property, acquired and available for use after December 3, 2018, that is qualified intellectual property or general-purpose electronic data processing equipment. For qualified property acquired and available for use in the taxation year, the CCA is equal to the capital cost of the acquired property.

A qualified intellectual property means property part of CCA class 14, 14,1 or 44, acquired after December 3, 2018, that is a patent or a right to use patented information, a licence, a permit, know-how, a commercial secret or other similar property constituting knowledge. The property must be acquired by the corporation in the course of a technology transfer or be developed by or on behalf of the corporation with a view to enabling the implementation of an innovation or invention with regards to its business. The expression “technology transfer” refers to the transmission, to a corporation, of knowledge in the form of know-how, techniques, processes or formulas. The process of implementing an innovation or invention as well as the implementation efforts of that innovation or invention must be made only in Québec.

General-purpose electronic data processing equipment and systems software for that equipment means property included in CCA class 50, acquired and available for use after December 3, 2018, that is used primarily in Québec in the course of carrying on a business.

Calculation of line Maximum allowable CCA in the Québec column

For CCA classes 14.1, 44 and 50, the custom line Capital cost of property qualified for the accelerated depreciation special rules in Québec included in the amount on line 203 allows you to enter the capital cost of qualified property. This line is used to calculate the amount to add to the line UCC balance for CCA calculation, according to the CCA class selected, and as a result, taking into account the rules for the calculation of the amount on the line Maximum allowable CCA. When the corporation’s taxation year starts after November 20, 2018, and CCA class 50 is selected, the amount on this line is calculated and equals the amount on line 203, Additions (property subject to subsection 1100(2) ITR).

For CCA class 14, the custom question Is one of the properties acquired during the year a property that qualifies for the accelerated depreciation special rules in Québec? is used to indicate if one of the properties acquired qualifies for the increased CCA. If the answer to this question is “Yes,” and the acquisition date is after December 3, 2018, the amount entered on custom line Capital cost of property qualified for the accelerated depreciation special rules in Québec included in the amount on line 203 is calculated and equals the amount on the line Current-year additions. This amount is then used to calculate the amount on the line Maximum allowable CCA.

This section of the form is used to calculate the additional CCA amounts for qualified property in CCA classes 50 and 53. It includes two subsections:

• Additional CCA of 35%, for qualified property acquired after March 28, 2017, and before March 28, 2018, that became available for use in the current or preceding taxation year; and
• Additional CCA of 60%, for qualified property acquired after March 27, 2018, and before December 4, 2018, (or acquired after December 3, 2018, and before July 1, 2019, in accordance with an obligation in writing entered into before December 4, 2018, or for which the construction by or on behalf of the taxpayer began before December 4, 2018) that became available for use in the current or preceding taxation year.

Calculation of the amounts on lines “Half of the capital cost of qualified property that became available for use in the current taxation year” and “Capital cost of qualified property acquired in the current taxation year”

The amounts entered on these lines are calculated in the following situations:

• When information relating to qualified property is entered on copies of Schedule 8 WORKCHART ADD, Additions and Dispositions Workchart (Jump Code: 8 WORKCHART ADD) of an eligible class:

• If the acquisition date is after March 28, 2017, and before March 28, 2018, and is part of the corporation’s taxation year, the amount on the line Half of the capital cost of qualified property that became available for use in the current taxation year of subsection Additional CCA of 35%, will be equal to the total of 50% of the amounts entered on the line Adjusted capital cost – Québec in each copy of Schedule 8 WORKCHART ADD.
• The same calculation, if the acquisition date is after March 27, 2018, and before November 21, 2018 and is part of the corporation’s taxation year, will be performed on the line Half of the capital cost of qualified property that became available for use in the current taxation year in the Qualified property that was acquired after March 27, 2018, and before November 21, 2018 subsection under Additional CCA of 60%.

• However, if the acquisition date is after November 20, 2018, and before December 4, 2018, and the CCA class is not a separate class for Québec, the following calculations will be performed in the Additional CCA of 60% - Qualified property that was acquired after November 20, 2018, and before December 4, 2018 section:

  • the amount on the line Capital cost of qualified property acquired in the current taxation year before December 4, 2018 that are not AIIP is equal to the total of the amounts entered on the line Adjusted capital cost – Québec in each copy of Schedule 8 WORKCHART ADD for property designated as not being an AIIP.

  • the amount on the line Capital cost of qualified property acquired in the current taxation year before December 4, 2018 that are AIIP is equal to the total of the amounts entered on the line Adjusted capital cost – Québec in each copy of Schedule 8 WORKCHART ADD for property designated as being an AIIP.

• When the amount on line 203, Additions (property subject to subsection 1100(2) ITR), is not calculated (because the property included in the class is not entered on copies of Schedule 8 WORKCHART ADD) and an amount is manually entered on that line:

• if the taxation year begins after March 28, 2017, but before March 28, 2018, the amount on the line Half of the capital cost of qualified property that became available for use in the current taxation year of subsection Additional CCA of 35% will be equal to 50% of the amount entered on line 203, Additions (property subject to subsection 1100(2) ITR);

  • if the taxation year includes March 28, 2018, a diagnostic will prompt you to enter an amount representing half of the capital cost corresponding to property acquired after March 27, 2018, and before November 21, 2018 and that became available for use in the current taxation year, on the line Half of the capital cost of qualified property that became available for use in the current taxation year in part Qualified property that was acquired after March 27, 2018, and before November 21, 2018 of subsection Additional CCA of 60% (the amount entered will then be automatically deducted from the amount in subsection Additional CCA of 35%);
  • if the taxation year includes November 21, 2018, a diagnostic will prompt you to enter the capital cost amount corresponding to the property that was acquired after November 20, 2018, and before December 4, 2018, on one of the four lines in the Additional CCA of 60% - Qualified property that was acquired after November 20, 2018, and before December 4, 2018 subsection (50% of the amount entered will then be automatically deducted from the amount in subsection Additional CCA of 35%).

In all aforementioned cases, the answer to the question Does this class include property eligible for the additional capital cost allowance for Québec? is Yes. In all other cases, the answer will be Yes when you enter an amount on any line in the Additional capital cost allowance (CCA) for Québec section based on the corporation’s situation because the program cannot determine the acquisition date or the relevant capital cost for property eligible for the additional CCA for Québec.

Calculation of the lines “UCC of qualified property that became available for use in the preceding taxation year”

The amounts entered on these lines are calculated when rolling forward a client file in which an amount is entered on the line Half of the capital cost of qualified property that became available for use in the current taxation year and for qualified property that was acquired after March 27, 2018, and before November 21, 2018, or for qualified property that was acquired after November 20, 2018, and before December 4, 2018, on one of the four lines in the Additional CCA of 60% - Qualified property that was acquired after November 20, 2018, and before December 4, 2018 section. The amount will be calculated according to the data entered on the line Half of the capital cost of qualified property that became available for use in the current taxation year or Amount added to the UCC attributable to qualified property, in proportion to the amounts in the fields CCA claimed (amount on line 217) and UCC in the class before CCA.

In the Information Bulletin 2018-9 published on December 3, 2018, the Ministère des Finances du Québec announced that an additional capital cost allowance of 30% would be added for targeted property. The CCA amount corresponds to 30% of the amount deducted, for the previous taxation year, relating to the CCA with respect to targeted property. In addition, the Information Bulletin indicates that a separate class must be created for property of a same class that gives rise to the additional CCA.

Targeted property

Targeted property must be acquired after December 3, 2018. It can be property that is new at the time of its acquisition by the corporation and not property acquired from a person or partnership with which the corporation is not dealing at arm’s length. It must start being used within a reasonable period of time after being acquired and for at least 730 consecutive days. In addition, it must be used primarily in Québec and must not be property with regards to which the corporation was entitled to or could have been entitled to claim the additional capital cost allowance of 60%. The property must be:

• equipment used in manufacturing or processing (class 53) or, if acquired after 2025, property included in class 43, but that would have been included in class 53 had it been acquired in 2025;
• clean energy generation equipment (class 43.1 or 43.2); or
• general-purpose electronic data processing equipment and related operating system software (class 50).

In addition, a targeted property can be a qualified intellectual property (certain property in classes 14, 14.1 and 44).

The program considers that property included in classes 14, 14.1, 43.1, 43.2, 44, 50 and 53 acquired after December 3, 2018, is targeted property. If this is not the case, modify the answer to the question Is the property a property that qualifies for the additional CCA of 30% in Québec? in Schedule 8 WORKCHART ADD (Jump Code: 8 WORKCHART ADD). If you are not using Schedule 8 WORKCHART ADD, make the required adjustments in the Schedule 8 WORKCHART. For more details on eligible properties, consult the Information Bulletin 2018-9 published by the Ministère des Finances du Québec.

Steps to follow in order for the program to correctly calculate the CCA and the additional CCA in respect of targeted property

The question Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%?, located under the field “If yes, specify the property to be linked in order to transfer data” for classes 14.1, 43.1, 43.2, 44, 50 and 53, and in subsection “Québec only” located under subsection “Current-year additions” for a class 14, allows you to indicate if the class is a separate class for purposes of Québec calculations. The question Are properties entered in the Québec column eligible for the additional CCA of 30%? located under the question Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? allows you to indicate if the CCA calculated for this class must be used the following year to calculate the additional CCA. Follow the instructions below in order for the program to correctly perform the calculations based on the corporation’s situation:

Situation number 1: All properties in the class are not targeted properties

If Schedule 8 WORKCHART ADD is used: No separate class is required, and the corporation is not entitled to the additional CCA. Create only one class and make sure that the answer to the question Is the property a property that qualifies for the additional CCA of 30% in Québec? determined by the program is “No” for all copies of Schedule 8 WORKCHART ADD of the class. Make sure that the answer to the questions Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? and Are properties entered in the Québec column eligible for the additional CCA of 30%? in Schedule 8 WORKCHART is “No.”

If Schedule 8 WORKCHART ADD is not used: No separate class is required, and the corporation is not entitled to the additional CCA. Create only one class and make sure that the answer to the questions Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? and Are properties entered in the Québec column eligible for the additional CCA of 30%? in Schedule 8 WORKCHART is “No.”

Situation number 2: All properties in the class are targeted properties

If Schedule 8 WORKCHART ADD is used: No separate class is required, and the corporation is entitled to the additional CCA for targeted property. Create only one class and make sure that the answer to the question Is the property a property that qualifies for the additional CCA of 30% in Québec? determined by the program is “Yes” for all copies of Schedule 8 WORKCHART ADD of the class. Therefore, the answer to the question Are properties entered in the Québec column eligible for the additional CCA of 30%? in Schedule 8 WORKCHART will be “Yes.” Make sure that the answer to the question Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? in Schedule 8 WORKCHART is “No.” The program will use the CCA amount claimed on line 217 of the Québec column to calculate the additional CCA when rolling forward the client file.

If Schedule 8 WORKCHART ADD is not used: No separate class is required, and the corporation is entitled to the additional CCA for targeted property. Create only one class and make sure that the answer to the question Are properties entered in the Québec column eligible for the additional CCA of 30%? of Schedule 8 WORKCHART is “Yes.” Make sure that the answer to the question Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? in Schedule 8 WORKCHART is “No.” The program will use the CCA amount claimed on line 217 of the Québec column to calculate the additional CCA when rolling forward the client file.

Situation number 3: The class contains targeted and non-targeted property

If Schedule 8 WORKCHART ADD is used: A separate class for purposes of the Québec calculations is required for targeted property, and the corporation is entitled to the additional CCA for targeted property. In a class, enter all properties in Schedule 8 WORKCHART ADD and make sure that the answer to the question Is the property a property that qualifies for the additional CCA of 30% in Québec? determined by the program is the correct one based on whether the property is targeted or not. Make sure that the answer to the questions Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? and Are properties entered in the Québec column eligible for the additional CCA of 30%? in Schedule 8 WORKCHART is “No.” In that situation, all amounts for properties entered in Schedule 8 WORKCHART ADD will be transferred to the Federal and Alberta columns of Schedule 8 WORKCHART. Only the amounts for non-targeted property will be transferred to the Québec column. Then, create a new class, answer “Yes” to the question Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? in Schedule 8 WORKCHART and enter only targeted property in Schedule 8 WORKCHART ADD. Make sure that the answer to the question Is the property a property that qualifies for the additional CCA of 30% in Québec? determined by the program is “Yes” for all copies of Schedule 8 WORKCHART ADD of this class. Make sure that the answer to the question Are properties entered in the Québec column eligible for the additional CCA of 30%? of Schedule 8 WORKCHART is “Yes.” The amounts in the Federal and Alberta columns of Schedule 8 WORKCHART will not be calculated for this copy of the class, and no amount should be entered in these columns. Only the amounts in respect of targeted property must be entered in the Québec column. The program will use the CCA amount claimed on line 217 of the Québec column to calculate the additional CCA when rolling forward the client file.

If Schedule 8 WORKCHART ADD is not used: A separate class for purposes of Québec calculations is required for targeted property, and the corporation is entitled to the additional CCA for targeted property. In a class, enter the amounts relating to targeted and non-targeted property in the Federal column of Schedule 8 WORKCHART. Make sure that the answer to the questions Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? and Are properties entered in the Québec column eligible for the additional CCA of 30%? in Schedule 8 WORKCHART is “No.” In the Québec column of Schedule 8 WORKCHART, enter only the amounts relating to non-targeted property, using an override. Then, create a new class, answer “Yes” to the questions Is this a separate class used solely for the Québec income tax return and relating to prescribed property qualifying for the additional CCA of 30%? and Are properties entered in the Québec column eligible for the additional CCA of 30%? in Schedule 8 WORKCHART and enter only the amounts relating to targeted property in the Québec column. The amounts in the Federal and Alberta columns of Schedule 8 WORKCHART will not be calculated for this copy of the class, and no amount should be entered in these columns. The program will use the CCA amount claimed on line 217 of the Québec column to calculate the additional CCA when rolling forward the client file.