Patents, Franchises, Concessions and Licences for a Limited Period (Class 14)

Class 14 property is prescribed to be property that is a patent, franchise, concession or licence for a limited period of time. The capital cost allowance for class 14 property is calculated in accordance with the remaining life of the property.

In Schedule 8 WORKCHART, the amount from current year additions must be entered on line 203. However, to calculate the amortization period and the maximum allowable CCA, the “Current year additions” section must be completed. The acquisition date and the termination date of the property must be entered in order to determine the CCA.

The remaining life of the property generally refers to the maximum period that the property may be used for the purpose of earning income. For example, for a fiscal year ending on December 31, a property acquired on December 31 would entitle the corporation to one day of CCA. The program makes that calculation and the result is added on the maximum allowable CCA line.

The “Prior year additions” table, located at the bottom of Schedule 8 WORKCHART, allows you to determine the CCA related to property already acquired.

To calculate the CCA properly, the acquisition and termination dates of each of the property must be entered. The CCA claimed to date in prior years line indicates the cumulated amount of CCA that was already claimed to date.

When rolling forward, the information contained in the table will be retained and the annual CCA will be added to the CCA claimed to date in prior years line. If there was an acquisition in the year, information related to that property will be transferred to a new line in the “Prior year additions” table.

The annual CCA for all prior year additions is displayed on the Annual CCA on prior year additions (as per schedule below) line. That amount is used to determine the maximum allowable CCA.