Leasehold Interests (Class 13)
You must first create a class 13. To do this, refer to the “Capital Cost Allowance” section. You must complete one leasehold interest table for each leasehold interest, regardless of how many additions were made during the current year or any prior years for that leasehold interest.
Enter the termination date for each leasehold interest in the applicable cell so that the appropriate CCA can be calculated. The program defaults this cell to the current taxation year end and provides a default amortization period for current year additions of 5 years (minimum amortization period).
Entering Additions
The way to enter leasehold additions depends on whether they are current year or prior year additions. The data for the current year must be entered in the “CCA Class 13” section of the workchart (Jump Code: 8 WORKCHART), while the data for additions from prior years must be entered in the Prior year additions table of this same workchart.
Current Year Additions
From Schedule 8 select the class 13 leasehold interest in which additions were made and press [F9] or [ENTER]. Schedule 8 – LI input schedule will then appear. Enter the total additions for the current year directly in this schedule.
Opening UCC Balance
The opening undepreciated capital cost (UCC) is determined using the closing undepreciated capital cost after you roll forward your data file. However, if you are entering data for a return for the first time, you must enter the opening UCC on line 201.
Please note that if you enter only the opening UCC balance for class 13, the program will not calculate the CCA. You must also enter the information for prior year leasehold additions that pertain to this opening UCC balance. The program will then calculate the CCA for the leasehold interest.
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